India’s semiconductor push is gathering pace in Gujarat, with Prime Minister Narendra Modi set to inaugurate the ₹3,300 crore ($400 Million) Kaynes Semicon plant on March 31, 2026, at Sanand GIDC in Ahmedabad, marking the start of commercial production at the facility.
It is indeed special to be back in Sanand to inaugurate the Kaynes Semicon Plant. Commercial production at the facility will also commence. This adds more momentum to India’s efforts to become a hub for semiconductors. It will give impetus to India being self-reliant in high…
— Narendra Modi (@narendramodi) March 30, 2026
The plant will begin by manufacturing advanced Intelligent Power Modules (IPMs), critical for automotive and industrial applications that require compact, efficient, and reliable power systems. Each module integrates 17 chips and will be supplied to California-based Alpha and Omega Semiconductor (AOS). At full scale, the facility is expected to produce up to 6.33 million units per day.
The project is part of the India Semiconductor Mission, a ₹76,000 crore ($10 Billion) government programme aimed at building a complete semiconductor ecosystem in the country. It will be India’s second OSAT/ATMP (Outsourced Semiconductor Assembly and Test / Assembly, Testing, Marking, and Packing) the second approved semiconductor project in India to begin commercial production and also marks the second operational OSAT/ATMP unit to go operational, strengthening a critical layer of the chip value chain.
The plant marks the entry of an Indian-origin Electronics Manufacturing Services (EMS) player into semiconductor manufacturing, a shift that could deepen domestic capabilities in the sector.
The facility will contribute to building indigenous semiconductor packaging capacity, addressing a critical gap in India’s chip ecosystem, and furthering the vision of self-reliance in high-technology manufacturing.
Semiconductor plants, especially OSAT/ATMP units, are critical to AI because they handle the packaging and integration of chips that power compute-heavy systems across data centers, EVs, and industrial automation. These facilities remove key backend bottlenecks in the chip supply chain, directly impacting the availability and scalability of AI hardware.
Earlier, On February 28, 2026, the Prime Minister inaugurated Micron Technology’s semiconductor ATMP facility in Sanand, Gujarat. The project, with a total investment of ₹22,516 crore ($2.75 Billion), signaling the start of commercial semiconductor production in India at its first large-scale assembly and test (ATMP) plant.
Also Read: India Hosts Semi-Conductor Assembly Facility With Micron Tech in Gujarat
