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Another chip maker has started output: Vaishnaw
The Kaynes unit, approved in September 2024 with an investment of ₹3,300 crore, is located in Sanand, Gujarat
Union IT and railways minister Ashwini Vaishnaw on Saturday announced that Kaynes Semiconductor has started chip production, making it the second unit in India to begin manufacturing under the government’s India Semiconductor Mission (ISM).
“The second semiconductor plant started production last week. First was CG Semi, and now it’s Kaynes,” Vaishnaw said at the GST Bachat Utsav press conference in New Delhi. Finance minister Nirmala Sitharaman and commerce minister Piyush Goyal also attended the briefing.
The Kaynes unit, approved in September 2024 with an investment of ₹3,300 crore, is located in Sanand, Gujarat. With a capacity of six million lakh chips per day, it will cater to applications across industrial, automotive, electric vehicle, consumer electronics, telecom, and mobile phone segments.
Under the ISM, 10 semiconductor units are currently under development or construction, with CG Semi, also based in Sanand, being the first to roll out made-in-India chips.
Vaishnaw, on the occasion of Dhanteras, said the country’s electronics ecosystem is witnessing rapid growth, boosted by rising demand and strong festive sales. “Record sales in electronics during Navratri. As per data received from retail shops, sales this Navratri were 25% higher compared to last year. Many categories, like 85-inch TVs, saw their entire stock wiped out. Many youngsters upgraded their old smartphones with new ones. Mobile phones, set-top boxes, TVs, washing machines, refrigerators, and many other consumer products saw an increase in sales,” he said.
Electronics manufacturing is growing at a double-digit annual growth rate, Vaishnaw said, adding that it is providing direct employment to 2.5 million people.
“This year, smartphone exports from India to the US have surpassed those from our neighbour. This is primarily in the high-end mobile phone segment. Some of the biggest companies now carry out 20% of their manufacturing in India. This is a positive reinforcement that as demand increases, manufacturing also increases,” he added.
As per government estimates, 99.2% of mobile phones sold in India are made here, with over 300 manufacturing units in the country currently.
Linking consumer growth to the broader economy, the minister said, “If we look at last year’s GDP, it was ₹335 lakh crore, out of which ₹202 lakh crore was our consumption and ₹98 lakh crore was our investment. As income grows, the country grows, consumption will also grow. It is quite likely that consumption will increase by more than 10% this year, which means an additional ₹20 lakh crore in consumption compared to last year.”
On employment generation, the minister said, “The electronics component manufacturing scheme has attracted investments worth ₹1.15 lakh crore. It is expected to generate an additional 90,000 jobs.”
Vaishnaw said the semiconductor and electronics push is part of the government’s larger vision to make India a global hub for advanced manufacturing.
