Kaynes gets nod for Rs 3,307-cr semicon unit

When we look at employment generation potential of semiconductor plant, we have to think like a steel plant, chemical, plastic plant or refinery as foundational industry that feeds into many industries - Ashwini Vaishnaw, IT Minister

New Delhi: The central government on Monday cleared a proposal of Kaynes Semicon to set up a Rs3,307-crore semiconductor unit in Sanand, Gujarat, that will have the capacity to churn out 6.3 million chips a day.

Addressing reporters after the Union Cabinet meeting, IT Minister Ashwini Vaishnaw noted that a complete semiconductor ecosystem is coming up in India under the India Semiconductor Mission, and promised that the country will take a long-term view of this ‘foundational’ sector and increase the outlay, as needed.

He likened the semiconductor industry to steel and chemicals industries which feed into many other allied sectors, and said the sector will be crucial for India’s growth and the industrial production blueprint of the country. The minister said that the progress of Tata’s fab, a complex project, has been ‘very good’, and added that land has been allocated, and geo-technical investigations are done.

“Today, the Cabinet has approved Kaynes’ plant, with a capacity of 6.3 million chips per day. The plant will come up in 46 acres, it is a big plant and large portion of the production will go for Kaynes Industries, it has already been booked,” the minister said.