PM Modi inaugurates Kaynes’ ₹3,300-crore semiconductor plant in Gujarat

Prime Minister Narendra Modi on March 31 inaugurated Kaynes Semicon’s ₹3,300-crore semiconductor facility at Sanand GIDC in Ahmedabad, marking an important step in India’s chip manufacturing ambitions. The OSAT plant has started commercial operations, producing Intelligent Power Modules (IPMs) that play a key role in electric vehicles, industrial machinery, and energy-efficient appliances. These modules integrate multiple chips into one package to deliver higher performance and efficiency.

PM Modi said Kaynes has become an important part of the global semiconductor supply chain and India is positioning itself as a trusted supplier. He added that more Indian companies will join the global semiconductor ecosystem in the coming years. Developed under the India Semiconductor Mission, the Sanand facility strengthens India’s goal of building a strong domestic electronics and chip assembly ecosystem.

This plant is India’s second operational semiconductor facility after Micron Technology launched its unit earlier this year. Modi said the launch creates a “new bridge between Sanand and Silicon Valley” and noted that a large portion of the plant’s output is already booked for exports. He said the slogan “Make in India, Make for the World” will reach broader global markets through such projects.

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Kaynes Plant to Scale Up to 6.3 Million Units Daily

Once fully scaled, the Kaynes plant is expected to produce around 6.3 million units per day, serving both domestic and international customers. The facility specializes in advanced semiconductor packaging, assembly and testing—key segments of the global chip value chain. Although India is still working toward building wafer fabrication units, the OSAT sector plays a vital role in enabling downstream manufacturing and supporting electronics production.

PM Modi also said India is working to strengthen its raw material supply chain for semiconductor manufacturing. He highlighted India’s inclusion in PAC Silica as an important step towards ensuring a stable and secure supply. According to Modi, India aims to build this supply chain in partnership with global players, reducing its import dependency and supporting long-term semiconductor growth.

Industry body IESA welcomed the inauguration, calling it a visible sign of India’s shift from planning to real execution in semiconductors. IESA President Ashok Chandak said the new OSAT facility and the rollout of Multi-Chip Intelligent Modules (MCMs) showcase India’s growing strength in advanced packaging and system integration. He added that the plant marks a significant move beyond chip design into full-fledged assembly, testing and packaging, which will boost domestic manufacturing capabilities and support India’s electronics market goals for 2030.

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