India Approves New Semiconductor Unit in Gujarat: A Step Towards Tech Independence
The Indian government, led by Prime Minister Narendra Modi, has approved a new semiconductor unit by Kaynes Semicon Pvt Ltd in Sanand, Gujarat. This unit will be set up with an investment of Rs 3,300 crore and will have a capacity to produce 60 lakh chips per day.
The chips produced will be used in various sectors including industrial, automotive, electric vehicles, consumer electronics, telecom, and mobile phones. This approval is part of a larger initiative to develop a vibrant semiconductor ecosystem in India.
The Programme for Development of Semiconductors and Display Manufacturing Ecosystem in India was launched in December 2021 with a total outlay of Rs 76,000 crore. In addition to the new unit, three more semiconductor units were approved in February 2024, and Tata Electronics is setting up a semiconductor fab in Dholera, Gujarat, and another unit in Morigaon, Assam.
Construction of these units is progressing rapidly, with a total investment of almost Rs 1.5 lakh crore and a cumulative capacity of about 7 crore chips per day. The Tata Group aims to start commercial production of semiconductor chips at the Gujarat and Assam plants by 2026.
The importance of indigenous semiconductor manufacturing was highlighted during the Covid-19 pandemic due to chip shortages. American chip maker Micron is also setting up a high-end semiconductor fabrication plant in Sanand, Gujarat, expected to be operational by late 2024.
Prime Minister Modi emphasized the need for India to become a global power in semiconductor manufacturing, similar to its achievements in technology, nuclear, and digital spaces. The government has launched production incentive schemes to make Indian manufacturers globally competitive and reduce dependency on imports.
Doubts Revealed
Semiconductor -: A semiconductor is a material that can conduct electricity under some conditions but not others, making it a good medium for the control of electrical current. They are used in electronic devices like computers and smartphones.
Prime Minister Narendra Modi -: Narendra Modi is the current Prime Minister of India. He is the head of the government and makes important decisions for the country.
Kaynes Semicon Pvt Ltd -: Kaynes Semicon Pvt Ltd is a private company in India that will be making the semiconductor chips in the new unit in Gujarat.
Sanand, Gujarat -: Sanand is a town in the state of Gujarat, India. It is known for its industrial development and is now getting a new semiconductor unit.
Rs 3,300 crore -: Rs 3,300 crore is a large amount of money. One crore is equal to 10 million, so Rs 3,300 crore is 33 billion rupees.
60 lakh chips -: 60 lakh means 6 million. So, the new unit will produce 6 million semiconductor chips every day.
Indigenous manufacturing -: Indigenous manufacturing means making products within the country itself, rather than importing them from other countries.
