The Union Cabinet has approved a proposal by Kaynes Semicon to establish a semiconductor unit in Sanand, Gujarat. This marks a significant step under the India Semiconductor Mission (ISM) with a total investment of ₹3,307 crore (US$394.15 million).
India Semiconductor Mission (ISM)
The India Semiconductor Mission (ISM) was launched in December 2021 with an initial outlay of ₹76,000 crore. The mission aims to build a robust semiconductor manufacturing and display ecosystem in India. The newly approved unit by Kaynes Semicon is the fifth semiconductor project under ISM, contributing to a cumulative investment of ₹1,52,307 crore (US$18.15 billion).
Kaynes Semicon’s ATMP Unit
Kaynes Semicon will establish an ATMP (assembly, testing, marking, and packaging) unit in Sanand, Gujarat. This facility will produce approximately 6 million chips daily, serving various sectors including industrial, automotive, electric vehicles, consumer electronics, telecom equipment, and mobile phones.
Facility and Production Timeline
- Location: The unit will be set up on a 47-50 acre facility in Sanand.
- Progress: Structural tests, soil testing, and leveling have been completed.
- Construction Timeline: Digging will begin shortly, with the clean room expected to be constructed within 6-8 months.
- First Chip Production: The first packaged chip is expected to be ready by March 31, 2025.
Strategic Partnerships and Customers
Kaynes Semicon has partnered with several technology companies:
- Globetronics (Malaysia)
- Aptos Technology (Taiwan)
- AOI (Japan)
These partnerships will aid in developing packaging and testing capabilities. Additionally, Kaynes Semicon has secured key customers, including Singapore-based Lightspeed Photonics, and two more from the US and Taiwan.
Employment and Training
The facility aims to employ 500 people by March 31, 2025. Kaynes Semicon has already hired 35 key personnel and made offers to 15 expatriates from the Philippines, Thailand, Malaysia, and Japan. The company has also signed MoUs with universities to recruit engineers and diploma holders.
Updates on Other Semiconductor Units in India
Minister Ashwini Vaishnaw provided updates on the progress of other semiconductor projects in India:
- Micron’s ATMP Facility (Gujarat): Approved in June 2023 with a $2.75 billion investment. The first chip is expected by mid-2025.
- Tata Electronics’ Semiconductor Fab Unit (Dholera, Gujarat): A complex and ambitious project currently under design.
- Tata Semiconductor Assembly and Test Unit (Morigaon, Assam): Construction has started recently.
- CG Power’s ATMP Unit (Sanand, Gujarat): Designed in partnership with Renesas Electronics (Japan) and Stars Microelectronics (Thailand). Construction will begin soon.
Multiple-Choice Questions (MCQs):
- What is the total investment approved by the Union Cabinet for Kaynes Semicon’s semiconductor unit in Gujarat?
a) ₹2,500 crore
b) ₹3,307 crore
c) ₹4,500 crore
d) ₹5,000 crore
Answer: b) ₹3,307 crore - Which initiative is Kaynes Semicon’s semiconductor unit a part of?
a) Make in India Mission
b) Digital India Initiative
c) India Semiconductor Mission (ISM)
d) Startup India
Answer: c) India Semiconductor Mission (ISM) - When is the first packaged chip from Kaynes Semicon’s ATMP unit expected to be produced?
a) March 31, 2024
b) December 31, 2024
c) March 31, 2025
d) December 31, 2025
Answer: c) March 31, 2025 - Which of the following companies is not a technology partner of Kaynes Semicon for the new ATMP unit?
a) Globetronics
b) Aptos Technology
c) AOI
d) Micron Technology
Answer: d) Micron Technology - What is the expected daily chip production capacity of Kaynes Semicon’s ATMP unit?
a) 3 million chips
b) 6 million chips
c) 10 million chips
d) 15 million chips
Answer: b) 6 million chips