Summary: Key Highlights
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Kaynes Semicon to deliver India’s first packaged semiconductor chip by July 2025.
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Pilot project near completion; machinery and clean room to be operational by May.
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Initial chips to be delivered to US-based Alpha Omega Semiconductor.
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Kaynes is setting up a 47-acre OSAT facility in Sanand, Gujarat.
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Unit has the capacity to produce 60 lakh chips per day.
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Government-approved under India Semiconductor Mission (ISM).
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India’s chip demand expected to reach $100-110 Bn by 2030.
Kaynes Semicon Leads India’s Semiconductor Breakthrough
In a significant milestone for India’s growing semiconductor ecosystem, Kaynes Semicon, a subsidiary of the four-decade-old electronics manufacturer Kaynes Technologies, is gearing up to deliver the country’s first packaged semiconductor chip by July 2025.
This marks a major leap under India’s ambitious India Semiconductor Mission (ISM) and aligns with the nation’s goal to become a global chip manufacturing hub.
Pilot Near Completion, Production Facilities Ready by May
Speaking to the Economic Times, Raghu Panicker, CEO of Kaynes Semicon, confirmed that the pilot for the project is nearly complete. The company expects its machinery and clean room facilities to be fully operational by May.
The next major step is qualification testing in June, after which initial samples will be handed over to the US-based Alpha Omega Semiconductor, a key customer that has signed a multi-year agreement, expected to utilize nearly 60% of Kaynes’s phase-one capacity.
Sanand Facility: India’s Emerging Chip Hub
In February 2023, Kaynes acquired land in Sanand, Gujarat, to develop its Outsourced Semiconductor Assembly and Test (OSAT) unit. Just a month later, the Union Cabinet greenlit the company’s ₹3,300 Cr proposal for setting up the semiconductor unit.
Even before receiving the official nod, Kaynes had already begun preparing construction plans, aligning technology partners, and onboarding potential customers.
Massive Chip Production Capacity
The upcoming 47-acre OSAT facility will have the capability to produce up to 60 lakh chips per day, making it one of India’s most promising semiconductor initiatives.
OSAT units are integral to the semiconductor value chain, as they handle assembly, packaging, and rigorous testing of integrated circuits for chipmakers globally.
Kaynes’s chips will cater to multiple high-demand sectors, including:
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Automotive (including EVs)
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Consumer Electronics
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Telecom
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Mobile Devices
Backed by Government & Industry Momentum
Kaynes Semicon’s proposal was approved under the India Semiconductor Mission (ISM) in September 2023, alongside major players like Tata Electronics, CG Power, Micron Technology, and Suchi Semicon.
While Tata is setting up two semiconductor units in Dholera, Gujarat and Morigaon, Assam, CG Power is establishing a unit in Sanand, Gujarat. Meanwhile, Micron Technology’s project in Gujarat was also approved by the Union Cabinet in June 2023.
India’s Semiconductor Demand on the Rise
With the country’s chip demand currently pegged at $45–50 billion, S. Krishnana, Secretary at MeitY, recently projected that India’s semiconductor needs may reach $100–110 billion by 2030.
The upcoming ISM 2.0 will aim to accelerate this momentum, ensuring India not only meets domestic demand but also establishes itself as a global exporter of competitive and high-quality chips.
The Indian semiconductor market is projected to be a $150 billion opportunity by 2030.
Conclusion
Kaynes Semicon’s landmark project places India firmly on the global semiconductor map. With strategic investments, strong government support, and rising industry demand, the country is poised to become a major player in the semiconductor supply chain, reducing import dependency and boosting self-reliance in technology.