India’s semiconductor push received a fresh boost with the inauguration of Kaynes Technology’s semiconductor plant in Sanand, Gujarat. The facility has begun production of Intelligent Power Modules, which are used in electric vehicles and industrial applications. A large share of the output is expected to enter export markets, linking domestic manufacturing with global supply chains.
Semiconductor Push in India
India launched the India Semiconductor Mission in 2021 to build a domestic chip ecosystem. Work is currently underway on 10 semiconductor projects across six states, with a combined investment of over Rs 1.6 lakh crore. The latest plant adds to the momentum after the start of production at another major facility in Sanand earlier this year.
Strategic Importance of the Sector
Semiconductors are critical for electronics, energy systems and advanced manufacturing. India aims to position itself as a reliable supplier amid global supply chain disruptions. Industry estimates place India’s semiconductor market at about $50 billion at present, with projections of crossing $100 billion by the end of the decade.
Technology, Supply Chains and Skills
The next phase of the mission focuses on domestic capabilities in semiconductor equipment and materials. It also seeks to secure critical raw materials through initiatives such as the National Critical Minerals Mission. India is also developing indigenous design capability, including the ‘Dhruv 64’ microprocessor, as part of wider efforts to strengthen the value chain.
Workforce and Industrial Applications
The government is close to training over 85,000 semiconductor design professionals. Nearly 400 institutions have already contributed to the design and manufacture of more than 50 chips. The sector is expected to support electric vehicles, clean energy, electronics and broader industrial growth.
Last Modified: April 28, 2026