PM Modi inaugurates ₹3,300-crore Gujarat semiconductor plant; 6.3 million chips/day capacity to boost India’s global supply chain play

Prime Minister Narendra Modi on Tuesday inaugurated a ₹3,300-crore semiconductor assembly and test facility in Sanand, Gujarat, marking a key milestone in India’s push to build a domestic chip manufacturing ecosystem. The greenfield facility, set up by Kaynes Technology, is part of a broader strategy to reduce import dependence and strengthen India’s position in the global semiconductor value chain.

“It is indeed a proud moment for India’s semiconductor ecosystem that the Kaynes Semicon OSAT facility has been inaugurated in Sanand, Gujarat. This will boost India’s efforts of emerging as a leader in futuristic technologies and innovation,” Modi said in a post on X.

Scaling up domestic chip capabilities

According to the company, the facility is an Outsourced Semiconductor Assembly and Test (OSAT) unit, a critical segment that handles packaging and testing of chips before deployment across industries. At full capacity, the plant is expected to produce around 6.3 million semiconductor units per day, catering to sectors such as electric mobility, industrial automation and consumer electronics.

Initial output will include Intelligent Power Modules (IPMs), widely used in electric vehicles and energy-efficient systems. With demand for such applications rising steadily, localising this segment is expected to reduce reliance on imports while improving supply resilience, the company revealed.

Speaking during his one-day visit to the state, Modi described the start of production at the Sanand unit as a notable milestone for India’s semiconductor ambitions. He indicated that chips manufactured at the facility are expected to find markets overseas, including in the United States, underscoring the export potential of the project. The Prime Minister also noted that a significant portion of the plant’s output has already been committed, reflecting early demand visibility.

Gujarat builds semiconductor momentum

The Prime Minister emphasised that the government is working towards creating a robust ecosystem that can meet a larger share of India’s semiconductor demand domestically. He added that the commissioning of the Kaynes facility provides fresh momentum to the sector, at a time when the country is positioning itself as a reliable partner in global technology supply chains. Calling this decade “India’s decade of technology,” Modi highlighted the growing policy focus on high-tech manufacturing.

The semiconductor project is part of a broader development push in the state. During the visit, Modi also inaugurated and laid the foundation stone for projects worth over ₹19,800 crore in the Vav-Tharad region, spanning infrastructure and public services.

Notably, the project adds to Gujarat’s growing prominence as a semiconductor investment destination, with Sanand emerging as a key hub. The region has already attracted global players such as Micron Technology, creating the foundation for a broader manufacturing ecosystem.

The development also aligns with the Centre’s semiconductor mission, which focuses on incentivising domestic manufacturing and attracting global investments into the sector.

About the company

Kaynes Technology is an integrated electronics manufacturing services (EMS) company with more than three decades of experience in electronic system design and manufacturing. The company operates multiple manufacturing facilities across India and provides design-led electronics manufacturing solutions spanning printed circuit board assembly, system integration, and lifecycle support.

It serves customers across sectors such as automotive, industrial automation, aerospace and defence, railways, medical devices and Internet of Things (IoT) applications.