Prime Minister Narendra Modi has formally inaugurated India’s second major semiconductor facility in Sanand, Gujarat, marking a significant acceleration in the nation's journey towards technological self-reliance.

This new facility, operated by Kaynes Semicon, represents a strategic cornerstone of the India Semiconductor Mission and is designed to address the burgeoning global demand for advanced electronic components.

The plant is an Outsourced Semiconductor Assembly and Test (OSAT) facility, a critical link in the electronics value chain where silicon wafers are transformed into finished chips. With an investment of approximately ₹3,300 crore, the unit has been established with remarkable speed, moving from the laying of its foundation stone to full commercial production in just 14 months.

At full operational capacity, the facility is projected to produce a staggering 6.33 million units per day. This high-volume output is centred on the manufacturing of Intelligent Power Modules, which are essential for the efficiency of electric vehicles, industrial power systems, and modern household appliances. Each of these complex modules integrates multiple individual chips to optimise performance.

Beyond domestic consumption, the plant is positioned as a vital node in the international supply chain. A significant portion of its production is already earmarked for export to major global technology firms, including those based in Silicon Valley. This creates a direct high-tech corridor between the industrial hubs of Gujarat and the world's leading innovation centres in the United States.

During the inauguration, the Prime Minister highlighted that this project is part of a much larger vision to establish India as a top-six global semiconductor nation by 2032. The government’s broader strategy includes ten approved projects across six different states, collectively valued at over ₹1.6 trillion, aimed at fostering a comprehensive ecosystem from design to fabrication.

This industrial expansion is also expected to be a major catalyst for high-tech employment and skill development. With the recent launch of "India Semiconductor Mission 2.0," the focus is now shifting toward the domestic production of specialized manufacturing equipment and raw materials, ensuring that the entire "stack" of chip production is rooted within Indian borders.

The Sanand facility follows the opening of Micron’s assembly plant earlier this year, signalling a rapid-fire succession of industrial milestones. Government officials have indicated that a third facility is slated to begin production as early as July, with a total of four plants expected to be fully operational by the end of 2026.

This surge in manufacturing capability is viewed as a prerequisite for India’s leadership in Artificial Intelligence and 5G infrastructure.

By securing the hardware layer of the digital economy, the nation aims to insulate its technology sector from global supply shocks while driving down the costs of home-grown electronics for millions of citizens.

Agencies