Beyond one factory, the inauguration hints at India’s emerging role in global semiconductor supply chains.
Kaynes Technology India Limited has inaugurated a ₹3.3 billion Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, designed to manufacture Intelligent Power Modules for electric vehicles, industrial systems and global export markets.
The project comes as India’s semiconductor market, currently valued at ₹4,500 billion, is projected to expand to ₹9,000 billion by 2030. A significant portion of the facility’s production has already been booked for overseas customers, including U.S.-based technology firms.
Prime Minister Narendra Modi inaugurated the plant, describing it as a key milestone in India’s effort to build a full-stack semiconductor ecosystem and become a dependable partner in global technology supply chains.
He noted that disruptions caused by geopolitical conflicts have exposed vulnerabilities in global supply chains, particularly in semiconductors, rare earth minerals and energy resources. Strengthening domestic manufacturing, he said, is essential to ensuring resilience.
The Sanand facility marks the second semiconductor project inaugurated by the Prime Minister in the region within a month, following the launch of Micron Technology’s semiconductor facility earlier this year. According to Modi, the rapid pace of project announcements reflects the accelerating development of India’s semiconductor ecosystem.
The Intelligent Power Modules produced at the plant are expected to support electric mobility and heavy-industry applications worldwide, reinforcing India’s position as an emerging electronics manufacturing hub.
The government is simultaneously expanding upstream capabilities through initiatives such as the India Semiconductor Mission, including a ₹1.5 billion mineral recycling programme and plans for a Rare Earth Corridor connecting coastal states, including Odisha, Andhra Pradesh, Tamil Nadu and Kerala.
Calling the current decade India’s “Techade,” Modi said investments in semiconductors will strengthen artificial intelligence adoption, space technologies, quantum computing and advanced manufacturing, supporting the country’s ambition to become a global technology and production powerhouse.
