India’s first semiconductor chip will arrive by mid-2025: Union Minister said – Government approved Kaines’ Rs 3,300 crore chip proposal

Union Minister Ashwini Vaishnav said that India’s first semiconductor chip will arrive by mid-2025. Ashwini Vaishnav said this in a briefing after the cabinet meeting on Monday (September 2).

Ashwini Vaishnav said that the Cabinet has approved the proposal of electronics manufacturer Kaynes Industries to build a semiconductor packaging plant with a capacity to produce 63 lakh chips per day. Kaynes will invest Rs 3,300 crore for this plant.

This plant will be built on 46 acres in Sanand, Gujarat
The plant will be built on 46 acres in Sanand, Gujarat, where two other chip making proposals have also been approved under the Rs 76,000 crore India Semiconductor Mission.

The first proposal to build the plant was approved in June 2023
The chips made in this plant will be supplied to sectors like industrial, automotive, electric vehicles, consumer, electronics, telecom and mobile phones. In June 2023, the Union Cabinet approved the first proposal to set up a semiconductor plant in Sanand, Gujarat.

Three more semiconductor plants were approved in February 2024
Three more semiconductor plants were approved in February 2024. Tata Electronics is setting up a semiconductor plant in Dholera, Gujarat and another in Morigaon, Assam. CG Power is setting up a semiconductor plant in Sanand, Gujarat.

The total capacity of all the plants is about 7 crore chips per day. Vaishnav said that the construction of all the 4 semiconductor plants is going on at a fast pace and a strong semiconductor ecosystem is emerging near the units. An investment of about Rs 1.5 lakh crore will come in these 4 plants. The total capacity of all these plants is about 7 crore chips per day.

Taiwan makes 60% of the world’s semiconductor chips
According to the Semiconductor Industry Association (SEMI), Taiwan accounts for 60% of global chip fabrication capacity (the ability to physically make semiconductors). TSMC alone manufactures about half of the world’s semiconductors.

The chip is made of silicon, it is like the brain of the gadget
Semiconductor chips are made of silicon, which controls electricity in the circuit. This chip helps gadgets to operate like a brain. Any electronic instrument is incomplete without it. Computers, laptops, cars, washing machines, ATMs, hospital machines and even smartphones work on semiconductor chips.

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