Kaynes eyes Rs 5,000 crore investment for new chip plant in Gujarat’s industrial hub of Sanand
In a significant step that can boost India’s ambitions in the semiconductor sector, electronics manufacturer Kaynes Technology has reportedly acquired land in Gujarat’s industrial region of Sanand to set up an outsourced chip assembly and testing facility. According to sources aware of the plans, Kaynes is looking to invest around Rs 5,000 crore for this project, reflecting both the state’s appeal as a manufacturing hub and the company’s optimism about the growing demand from customers in vital sectors like automobile, healthcare and industrial equipment.
If this ambitious investment does indeed take shape, it will be a major stride both for Kaynes and the Indian electronics industry’s ongoing expansion. From electronics to railway systems to aeronautic components, Kaynes has cemented itself as an experienced producer catering to industries both commercial and strategic. Now, by potentially entering chip fabrication and packaging, it aims to move higher up the value chain and tap new opportunities in semiconductor manufacturing – an area with strong government support as India looks to reduce reliance on overseas supply and develop a self-reliant design-to-delivery ecosystem.
The decision to locate this plant in Sanand’s industrial area also mirrors the investments pouring into Gujarat from other tech firms, drawn by the state’s pro-business policies, infrastructure and ease of doing business. Importantly though, Kaynes is not abandoning its plans in Telangana, where it had already committed Rs 2,800 crore for an OSAT unit that will focus more on basic EMS work. The more advanced semiconductor work will now be concentrated in Gujarat, leveraging the region’s growth while not abandoning ongoing initiatives elsewhere.
If realized, Kaynes’ new chip facility could be pivotal both for realizing India’s semiconductor manufacturing dreams as well as the company’s own expansions. Much still depends on project take-off but it offers the potential of a win-win for industry and “Make in India” objectives alike.
