PM Modi Inaugurates ₹3,300 Crore Kaynes Semiconductor Plant In Gujarat

On 31 March 2026, Prime Minister Narendra Modi inaugurated Kaynes Semicon’s ₹3,300 crore OSAT (Outsourced Semiconductor Assembly and Test) facility at Sanand, Gujarat.

This is India’s second semiconductor facility to become operational under the India Semiconductor Mission (ISM), and among the first OSAT units to enter the production phase in the country.

Kaynes Semicon is a wholly-owned subsidiary of Kaynes Technology India Limited. As a result of the announcement, Kaynes Technology’s share price jumped over 5% to reach ₹3,611 at 10:30 AM on 1 April 2026.

What Is The Scale And Capability Of This Plant?

The estimated daily production capacity of the factory is over 60 lakh (6 million) chips per day. The plant is going to be a major supplier of IPMs (Intelligent Power Modules) and the chips used in electric vehicles, industrial equipment, and consumer electronics. It will also develop integrated processes such as packaging, testing, marking, and assembling chips, which are essential segments of the semiconductor industry.

A large share of the production is going to be exported, which is expected to help India become a major player in the global semiconductor supply industry.

Why Does This Matter For India’s Chip Plans?

The India Semiconductor Mission (ISM) was started in 2021 to build a strong chip-making ecosystem in the country. So far, the government has approved 10 semiconductor projects, with a total investment of over ₹1.6 lakh crore.

Kaynes’ Sanand facility is part of a larger project and comes after Micron Technology, which had also set up its plant in Sanand earlier. The government expects four semiconductor plants to be ready by 2026.

Right now, the valuation of India’s semiconductor market is approximately ₹4.5 lakh crore, and it is expected to cross ₹9 lakh crore by 2030. But historically, India has mostly depended on imports for semiconductors, which is a big risk for sectors like electronics, telecom, and automobiles.

Projects under the ISM show a clear push to reduce dependence on imports and build a complete semiconductor ecosystem within the country.

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Government’s Broader Vision

The Times of India reported that the Prime Minister highlighted India’s goal to become a reliable global semiconductor supplier, and linked this push to the broader Make in India initiative.

The government is working on multiple areas at the same time. It plans to train around 85,000 semiconductor professionals, build recycling and rare-earth supply chains worth ₹1,500 crore, and support startups through chip design programmes.

Sources:

The New Indian Express

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