A ₹3,300 crore semiconductor facility by Kaynes Technology has been inaugurated at Sanand GIDC, Ahmedabad (Gujarat), marking a major step in India’s semiconductor journey.
About Kaynes Semiconductor Facility
The plant will manufacture Intelligent Power Modules (IPMs) used in:
- Electric Vehicles (EVs)
- Industrial applications
Key features:
- Second major semiconductor facility in India
- Part of the India Semiconductor Mission
- Strengthens domestic chip manufacturing ecosystem
- Commercial production began by February 2026
- Integrated with global supply chains
- Significant share of production aimed at exports
India’s Semiconductor Market
India’s semiconductor market:
- Currently valued at ~$50 billion
- Expected to exceed $100 billion by 2030
This growth underlines the need for domestic manufacturing capacity.
India Semiconductor Mission (ISM)
The India Semiconductor Mission was launched in 2021 with an outlay of ₹76,000 crore under the Ministry of Electronics and Information Technology.
Objectives:
- Develop semiconductor fabrication (fabs)
- Build testing, packaging, and design ecosystem
- Support startups and MSMEs in chip design
- Attract global investments
Key Schemes under ISM
- Semiconductor Fabs Scheme: Up to 50% fiscal support
- Display Fabs Scheme: Up to 50% project cost support
- Design Linked Incentive (DLI): Support for chip design startups and MSMEs
Progress under ISM
- 10 projects approved across 6 states
- Investment: ₹1.6 lakh crore+
- Focus on fabs, compound semiconductors, packaging, and testing units
India Semiconductor Mission 2.0
The next phase (ISM 2.0) aims to deepen capabilities:
- Budget (FY 2026–27): ₹1,000 crore
- Promote indigenous manufacturing (equipment, materials, chemicals)
- Develop full-stack semiconductor IP
- Strengthen R&D and skill development
- Build resilient supply chains
Strategic Goals
- Achieve 70–75% self-sufficiency in chip demand by 2029
- Develop advanced 3 nm and 2 nm chip manufacturing capabilities by 2035
- Position India as a global semiconductor hub
Supporting Ecosystem
- Modified Semiconductor Programme (₹8,000 crore for 2026–27)
- Focus on fabrication expansion, job creation, and innovation
- Global diversification strategy to reduce reliance on countries like Taiwan (60% global chip production)