Kaynes Semicon starts production at Sanand OSAT facility, marking India’s second chip unit
Targets power modules and build talent pipeline as Sanand emerges as a semiconductor cluster.
Prime Minister Narendra Modi has inaugurated the ₹3,300 crore facility, which focuses on outsourced semiconductor assembly and test (OSAT), covering assembly, testing, marking and packaging of chips.
The unit addresses a critical gap in India’s semiconductor value chain, which has so far lacked large-scale domestic packaging capabilities.
The plant begins production with Intelligent Power Modules (IPMs), used in automotive and industrial applications requiring efficient power switching systems.
Each module integrates 17 chips, and initial output is being supplied to Alpha and Omega Semiconductor.
The facility has already shipped around 900 multi-chip modules (IPM5), indicating early execution ahead of formal inauguration.
Once fully operational, the plant is expected to reach a capacity of around 6 million units per day.
The project marks the entry of an Indian electronics manufacturing services (EMS) player into semiconductor manufacturing, expanding domestic participation beyond global companies.
It is the second approved semiconductor project to begin production after Micron Technology, which recently operationalised its ATMP facility in Gujarat.
Builds packaging capacity and talent pipeline
Kaynes’ Sanand unit strengthens India’s back-end semiconductor capabilities by adding OSAT capacity at scale.
The development comes as India pushes to build a complete chip ecosystem, spanning fabrication, assembly, and testing.
The company has also signed a memorandum of understanding with SVNIT Surat to support skill development and workforce readiness.
The partnership will provide internships, industry-led training, and curriculum alignment focused on semiconductor packaging and testing, aimed at bridging the gap between academia and industry.
Sanand is emerging as a semiconductor manufacturing cluster, with multiple projects under development.
In addition to Kaynes and Micron, another OSAT unit by CG Semi has been inaugurated in the region. Gujarat currently hosts four of the ten semiconductor projects approved under the national programme.
The cluster is further supported by upcoming investments, including a semiconductor fabrication facility being developed by Tata Electronics in the Dholera Special Investment Region in partnership with Taiwan’s PSMC.
The project, valued at over ₹91,000 crore, is expected to add front-end chip manufacturing capabilities to the ecosystem.
The rapid pace of project execution highlights the government’s push to accelerate semiconductor manufacturing in India, with timelines such as Micron’s facility being completed in under 900 days.
As India builds out semiconductor infrastructure, the addition of OSAT capacity and workforce development initiatives is expected to support demand from automotive, industrial, and electronics sectors, while reducing dependence on global supply chains for chip packaging and testing.