Synopsis
It is the second such plant in India and an achievement in the semiconductor sector. It is being recognised as one of the most crucial initiatives under India's semiconductor mission, as it will accelerate the mission. Earlier today, PM Modi also inaugurated the Samrat Samprati Museum at Koba Tirth in the Mahavir Jain Aradhana Kendra campus in Gandhinagar on the occasion of Mahavir Jayanti. PM Modi inaugurates Rs 3,300 cr Kaynes semiconductor plant in Sanand GIDC in AhmedabadPrime Minister Narendra Modi inaugurated Kaynes Semicon’s Sanand plant on Tuesday, marking a major step forward under the India Semiconductor Mission (ISM).Kaynes Semicon’s plant is the second semiconductor facility to become operational under ISM 1.0. It started commercial production on Tuesday.
The government has approved 10 projects under ISM 1.0. Micron Technology was the first company to set up a semiconductor plant--which is also in Sanand—under it.
Kaynes Semicon’s factory is India’s second OSAT/ATMP (outsourced semiconductor assembly and test / assembly, testing, marking and packing) unit entering the production phase. It also marks the entry of an Indian-origin electronics manufacturing services player into semiconductor manufacturing.
The facility will contribute to building indigenous semiconductor packaging capacity, addressing a critical gap in India’s chip ecosystem.
Commercial production will start with the manufacturing of advanced intelligent power modules (IPMs), which are critical components for automotive and industrial applications requiring compact, efficient and reliable power switching systems.
Each module comprises 17 chips and will be supplied to California-based Alpha and Omega Semiconductor (AOS). When all phases of the plant are completed, it will have the capacity to produce 6.33 million units per day.
"Kaynes has now become part of the global semiconductor supply chain. In the coming days, many Indian companies, through global collaboration, will give the world a resilient semiconductor supply chain," Modi said.
With the facility supplying IPMs to AOS and a large share of its output already booked for export, Modi said a bridge has effectively been built between Sanand and Silicon Valley.
"The modules made in Sanand will reach American companies and from there will power the entire world," he said, adding that the IPMs being manufactured at the facility will strengthen the electric vehicle ecosystem and heavy industry, both in India and globally.
Modi said that work is underway on 10 projects worth over ₹1,60,000 crore across six states. He also highlighted the development of the indigenous Dhruv 64 microprocessor, which provides a secure processor platform for 5G infrastructure, automotive electronics, and industrial automation. "India is building the capacity to design and manufacture at every level of the semiconductor value chain," he said.
The prime minister also spoke about ISM 2.0, unveiled in this year's budget. With a focus on domestic production of semiconductor equipment and materials, the new phase aims to build a full-stack Indian semiconductor ecosystem, he said. "Our effort now is to create an ecosystem so that we can forge big partnerships in both domestic and global supply chains," Modi said.
The PM also highlighted India's efforts to build a future-ready workforce, noting that the target of training over 85,000 design professionals will be achieved very soon.
Modi also spoke about the Chips to Startup programme, under which nearly 400 universities and startups have been given access to modern design tools, resulting in the design and manufacture of over 55 chips. "Technology development and a skilled workforce must go hand in hand , India is ensuring both," he said.
IT minister Ashwini Vaishnaw said that a third semiconductor facility will start production in July and by the end of this year, four plants will have commenced production. He said two more plants will start production next year, and India's first semiconductor fabrication plant will start operations in 2028.
In Video: PM Modi inaugurates Rs 3,300 cr Kaynes semiconductor plant in Sanand GIDC in Ahmedabad
