Narendra Modi to inaugurate Rs. 3,300 crore chip facility in Sanand, boosting semiconductor push

Sanand (Gujarat) — Sanand’s shift from an automobile manufacturing hub to a rising centre for semiconductor production is set to gain momentum as Prime Minister Narendra Modi is scheduled to inaugurate an outsourced semiconductor assembly and test (OSAT) facility by Kaynes Semicon on March 31.

The facility, being developed at a cost of ?3,300 crore, received approval from the Union Cabinet on September 23, 2024, under the National Semiconductor Mission. Located in the Sanand industrial area of Gujarat, the plant will handle testing and packaging of semiconductor chips — a crucial step before they enter the market.

The unit is expected to have a production capacity of nearly 60 lakh chips per day, strengthening India’s position in the global semiconductor supply chain. 

This development follows the inauguration of a semiconductor facility by Micron Technology on February 28, and forms part of a growing semiconductor cluster in the region. Another unit is also being developed by CG Semi, further consolidating Sanand’s importance in the sector.

The Gujarat government, led by Chief Minister Bhupendra Patel, has been actively working to position the state as a major hub for semiconductor manufacturing and allied industries. Officials say the new OSAT facility will strengthen the local ecosystem and boost economic activity tied to advanced manufacturing.

Highlighting the pace of development, Modi earlier pointed to the swift progress of the Micron project — from MoU signing in June 2023 to commercial production beginning in February 2026 — noting that India achieved in about 900 days what often takes years elsewhere.

The Prime Minister has also stressed that the goal is not just to build individual factories but to create a comprehensive semiconductor ecosystem. He said initiatives like “India Semiconductor Mission 2.0” aim to strengthen the entire value chain, from chip design to manufacturing equipment and logistics. 

According to official data, 10 major projects have been approved under the Semicon India programme so far, with four located in Gujarat. The growing cluster in Sanand is increasingly being compared with global semiconductor hubs such as Hsinchu in Taiwan and Gyeonggi in South Korea.

With inputs from IANS