India has taken a major step toward strengthening its semiconductor ecosystem with Prime Minister Narendra Modi inaugurating a semiconductor manufacturing facility of Kaynes Technology in Sanand. This development highlights the country’s accelerating push to become a global hub for chip manufacturing.
Sanand Emerging as a Semiconductor Hub
The newly inaugurated Kaynes Technology plant in Sanand has commenced production, reinforcing Gujarat as a key semiconductor manufacturing destination. The Prime Minister noted that this comes soon after production began at another major facility in the region, indicating rapid progress in India’s semiconductor journey.
Focus on Intelligent Power Modules
The Kaynes facility will manufacture Intelligent Power Modules—critical components used in electric vehicles and industrial systems. These modules are essential for efficient power management, making them vital for sectors like EVs, renewable energy, and automation. A significant share of production is expected to be exported, helping India integrate into global semiconductor supply chains.
India Semiconductor Mission and Investments
India’s semiconductor push is anchored in the India Semiconductor Mission, launched in 2021 to boost domestic chip manufacturing. Currently, around 10 projects worth over ₹1.6 lakh crore are being implemented across multiple states. These initiatives aim to reduce import dependence and position India as a reliable global supplier amid ongoing supply chain disruptions.
Important Facts
- India Semiconductor Mission was launched in 2021 to promote chip manufacturing.
- Semiconductors are essential for electronics, EVs, and advanced technologies.
- Sanand is emerging as a major semiconductor hub.
- National Critical Minerals Mission focuses on securing raw materials for technology sectors.
Future Growth and Strategic Vision
India’s semiconductor market, currently valued at around $50 billion, is projected to exceed $100 billion by the end of the decade. The government is also promoting indigenous capabilities, including chip design and materials, supported by initiatives such as the Dhruv 64 microprocessor. Workforce development is another priority, with efforts underway to train thousands of professionals—positioning the semiconductor sector as a key driver of growth in electric vehicles, clean energy, and electronics.