Sanand (Gujarat), March 29 (NationPress) - The rapid evolution of Sanand from an automobile manufacturing hub to a pivotal player in India's semiconductor landscape is about to take a significant leap. Prime Minister Narendra Modi is set to unveil an outsourced semiconductor assembly and test (OSAT) facility by Kaynes Semicon on March 31.

This facility, which involves an investment of Rs 3,300 crore, received approval from the Union Cabinet on September 23, 2024, as part of the National Semiconductor Mission.

Situated in the Sanand industrial zone, this unit will focus on the testing and packaging of semiconductor chips, fulfilling a vital step in the chip manufacturing supply chain.

With an anticipated production capacity of approximately 60 lakh chips daily, this project follows Micron's semiconductor facility inauguration on February 28, and is part of a wider network of semiconductor investments emerging in the area.

Alongside Kaynes Semicon and Micron, CG Semi is also establishing a unit, highlighting the increasing concentration of semiconductor-related activities in Sanand.

The Gujarat government, under Chief Minister Bhupendra Patel, is proactively working to establish the state as a semiconductor manufacturing and related industries hub.

Officials have noted that the introduction of the OSAT facility will further bolster the local ecosystem and stimulate economic activities linked to advanced manufacturing.

In reference to the swift development in this sector, PM Modi remarked, “The MoU for the Micron facility was signed in June 2023, the foundation stone was laid in September, and by February 2026, commercial production has already commenced. Even in developed nations, such approvals and processes typically take years, but India has accomplished this seemingly insurmountable task in just 900 days. When the intent is clear and the commitment is towards national development, policies become evident, and decisions gain momentum automatically.”

Additionally, he stressed the overarching goal of creating a comprehensive semiconductor ecosystem within the country.

“Our objective extends beyond establishing a single facility; we aim to foster an entire ecosystem. India is now concentrating on the complete semiconductor value chain, encompassing design engineers, machine manufacturers, and logistics. The announcement of ‘India Semiconductor Mission 2.0’ marks a significant advancement in this direction. As production escalates, the demand for materials and components within India will surge, presenting the largest opportunity for local industries,” he stated.

Emphasizing the sector's long-term importance, the Prime Minister pointed out that the development of semiconductor capabilities will make this decade a crucial turning point for India’s technological trajectory, noting that the country is increasingly becoming a vital component of the global semiconductor value chain.

As per official statements, 10 significant projects have been approved under the Semicon India program, with four currently in development in Gujarat.

The clustering of these projects in Sanand has drawn parallels with renowned semiconductor hubs like Hsinchu in Taiwan and Gyeonggi in South Korea.