PM Modi Inaugurates India’s Second Semiconductor Plant, Kaynes Semicon Begins Operations

Prime Minister Narendra Modi on Tuesday inaugurated Kaynes Semicon’s ₹3,300 crore semiconductor facility at Sanand GIDC in Ahmedabad, according to a report by Business Today.

The move is part of India’s push to build domestic chip manufacturing capacity and reduce dependence on imports. The plant, an outsourced semiconductor assembly and test (OSAT) unit, has begun commercial operations and will focus on assembly, packaging, and testing, critical steps in the global semiconductor value chain.

The facility is the country’s second operational semiconductor plant under the India Semiconductor Mission, after Micron Technology’s unit. Modi said the Sanand project demonstrates that an Indian company can play a stronger role in the global chip supply chain and positions India as a trusted semiconductor supplier. He added that the project reflects the country’s “Make in India, Make for the World” ambition, with a significant share of output already booked for export.

Commercial production has started with Intelligent Power Modules (IPMs), which are used in electric vehicles, industrial systems, and energy-efficient appliances.

These modules integrate multiple chips into a single package to enhance performance and efficiency. At full scale, the plant is expected to produce around 6.3 million units per day, catering to both domestic and international customers, including global semiconductor firms.

India’s Semiconductor Ecosystem

The launch comes as India looks to strengthen its semiconductor ecosystem across not just design, but also assembly, testing, packaging, and raw material supply chains. PM Modi noted that India is working to secure a more resilient semiconductor network in collaboration with global partners.

Industry body India Electronics and Semiconductor Association reportedly welcomed the development, calling it a sign that India is moving from policy intent to execution in semiconductors.

IESA President Ashok Chandak said the project highlights India’s growing capabilities in advanced packaging, system integration, and scalable manufacturing, and will support local industry while strengthening ancillary sectors.

The development aligns with India’s broader industrial goals of building a $400 billion electronics market and a $103 billion semiconductor market by 2030.