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Kaynes Semicon ramps up Sanand plant for 2.3-billion-unit capacity
Kaynes Semicon has started making semiconductor products at a new factory in Sanand, Gujarat.
The factory covers 49 acres and can eventually make 2.3 billion units every year.
The project received government approval in 2024 and involves an investment of ₹3,300 crore.
Its chips can be used in cars, electric vehicles, phones, telecommunications equipment and other products.
The company is making several kinds of chip packages instead of focusing on only one market.
It is also using more machines and artificial intelligence to control its production processes.
Some important materials are still supplied by companies outside India.
Kaynes says India could create new local suppliers for materials such as special copper alloys and semiconductor-grade gold.
Kaynes Semicon has begun commercial production at its 49-acre semiconductor facility in Sanand, Gujarat.
The plant has more than 15,000 square metres of built-up space and is designed to produce 2.3 billion units annually.
The facility was approved by the Union Cabinet in 2024 with a planned investment of ₹3,300 crore.
Its chips will serve industrial, automotive, electric-vehicle, consumer-electronics, telecom and mobile-phone markets.
Kaynes is increasing automation, using AI for process control and pursuing local suppliers for materials such as copper, gold and bonding wire.
- Who
- Kaynes Semicon, led at the facility by General Manager Hernaine “Nanie” Torres, is developing the plant.
- What
- The company has begun commercial semiconductor production at a facility designed for 2.3 billion units annually.
- Where
- Sanand, Gujarat, India.
- When
- Commercial production began about six months before the article’s September 18, 2026 publication; the plant was inaugurated in March of that year.
- Why
- Kaynes aims to build a broad semiconductor assembly and testing business serving multiple industries and to develop a more localized supplier ecosystem.
Key facts
- Facility size
- 49 acres, with more than 15,000 square metres of built-up space
- Annual capacity
- 2.3 billion units
- Project investment
- ₹3,300 crore
- Government approval
- The Union Cabinet approved the proposed unit in 2024
- Applications
- Industrial, automotive, electric vehicles, consumer electronics, telecom and mobile phones
- Automation level
- Kaynes rates its current automation between 3.9 and 4.1 on a five-point scale
- Key material costs
- Lead frames account for 5–15% of manufacturing cost, molding compounds 4–8% and bonding wire 2–8%
Quotes
Hernaine “Nanie” Torres
General Manager of Kaynes Semicon
“India has 99.99 per cent copper cathode, but we need C194 and C7025 alloy strips. This metallurgy is currently controlled by suppliers in Japan, Korea, Taiwan, China and Germany. India has the raw material; what it needs is the technology.”
thehindubusinessline.com
“Then, for process control, we go towards AI. As a matter of fact, if you would rate the automation level that we are in now, one being the lowest, five going to AI, we are at 3.9 and 4.1.”
thehindubusinessline.com
Sources
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