The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved the proposal of 4 Indian Companies to set up 5 state-of-the-art semiconductor facilities in India with investments ranging upto Rs. 91,000 Crores
Construction of all 5 semiconductor units is progressing at a rapid pace and a robust semiconductor ecosystem is emerging near the units. These 5 units will bring an investment of more than Rs 1.5 Lakh crore. The cumulative capacity of these units is about greater than 7 crore chips per day.
Listed below are the companies that have received Government approval to setup semiconductor factories in India.
Kaynes Technology India
Kaynes Technologies India Limited is an end-to-end and Internet of Things (IoT) solutions-enabled integrated electronics manufacturer. It offers its products and services to major players in the automotive, industrial, nuclear, medical, railway, aerospace and defense, outer space, nuclear, medical, railways, and many others. As of Q1FY25, it has a strong order book of Rs. 5,038 Crores.
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With a market capitalization of Rs. 29,581 Crores, the shares of Kaynes Technology India Limited were trading at Rs. 4,628 per equity share, down 1.5 percent from its previous day’s close price of Rs. 4,698.50.
Kaynes Technology India Limited’s wholly-owned subsidiary Kaynes Semicon Private Limited’s proposal to set up a semiconductor unit at Sanand, Gujarat with an estimated investment of Rs 3,307 Crores was approved by the Union Cabinet on September 2, 2024.
The proposed semiconductor unit will be set up, and its capacity will be to Assemble, Test, Mark, and pack 60 Lakh chips per day. The chips produced in this unit will cater to a wide variety of applications, including industrial, automotive, electric vehicles, consumer electronics, information technology, telecom, mobile phones, and many others.
In addition, Kaynes Technologies India Limited is also investing Rs. 2,800 Crores to set up a semiconductor OSAT (Outsourced Semiconductor Assembly and Test) and compound semiconductor facility at Kongara Kalan near Hyderabad.
Adani Enterprises
Adani Enterprises Limited is a holding company operating across various businesses like resource management, FMCG, Power, airports, data centers, and many more through its Joint Ventures/subsidiaries/associates.
With a market capitalization of Rs. 3,35,616 Crores, the shares of Adani Enterprises Limited were trading at Rs. 2,944 per equity share, down 1 percent from its previous day’s close price of Rs. 2,976.85.
The Maharashtra cabinet panel has approved a $10-billion or Rs. 83,947 crores investment proposal by a joint venture of Israel’s Tower Semiconductor-Adani Group to set up a semiconductor chip manufacturing unit at Taloja,Panvel.
The proposed semiconductor manufacturing plant, located in the Navi Mumbai suburbs in Raigad district, will have an initial capacity of 40,000 wafer starts per month (WSPM) in the first phase, with an ultimate capacity of 80,000 WSPM, along with generation of 5,000 employment opportunities.
CG Power and Industrial Solutions
CG Power and Industrial Solutions Limited is engaged in providing end-to-end solutions to utilities, industries, and consumers for the management and application of efficient and sustainable electrical energy.
With a market capitalization of Rs. 1,01,400 Crores, the shares of C.G Power and Industrial Solutions Limited were trading at Rs. 664 per equity share, down 1.37 percent from its previous day’s close price of Rs. 673.60.
CG Power and Industrial Solutions Limited in partnership with Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand will set up a semiconductor unit in Sanand, Gujarat, with an investment of Rs 7,600 crores.
This semiconductor unit will manufacture chips for consumer, industrial, automotive, and power applications with a capacity of 15 million per day.
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Tata Electronics
Tata Electronics Private Limited which is currently not listed on the Indian Stock exchanges and is a direct subsidiary of Tata Sons Private Limited, will set up a semiconductor fab in partnership with Powerchip Semiconductor Manufacturing Corp (PSMC), Taiwan, in Dholera, Gujarat, and Morigaon, Assam with an of upto Rs 91,000 crore.
It will have a capacity of 50,000 wafer starts per month. This unit will produce high-performance computing chips with 28 nm technology. It will produce Power management chips catering to electric vehicles (EV), telecom, defence, automotive, consumer electronics, display, power electronics, and others.
In addition, its subsidiary Tata Semiconductor Assembly and Test Pvt Ltd (“TSAT”) will set up a semiconductor unit in Morigaon, Assam, with an investment of Rs 27,000 crore, with a capacity of 48 million per day.
It will focus on Wire Bond, Flip Chip, and a differentiated offering called Integrated Systems Packaging. This unit will cover segments such as Automotive, electric vehicles, consumer electronics, telecom, mobile phones, etc.
Written by: Bharath K.S
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