Kaynes Tech India shares up nearly 7% as govt approves ₹3,307 crore semiconductor unit in Gujarat

In the early trade, the stock was trading 6.6% higher at ₹4,974.7 apiece on the NSE. Its market capitalisation stands at ₹31,797.3 crore.

On the BSE, it was up 6.5% to ₹4,960.5 a unit.

Kaynes' proposal for ₹3,307 crore semiconductor unit gets govt nod

The government on Monday gave the green light to Kaynes Semicon's proposal to establish a ₹3,307-crore semiconductor unit in Sanand, Gujarat. The unit will have a capacity to produce 6.3 million chips per day.

Addressing the media after the Union Cabinet meeting, Union Information Technology (IT) Minister Ashwini Vaishnaw noted that a complete semiconductor ecosystem is coming up in the country under the India Semiconductor Mission.

"Yet another boost to India's efforts towards becoming a hub for semiconductors. The Cabinet approves one more semiconductor unit under the India Semiconductor Mission. To be set up in Sanand, this will cater to a wide range of sectors and also give employment to several youth," Prime Minister Narendra Modi said in a post on X.

Vaishnaw likened the semiconductor industry to the steel and chemicals industries, which feed into many other allied sectors, and said the sector will be "crucial" for India's growth and industrial production blueprint.

The minister said the progress of Tata's fab, a complex project, has been "very good" and added that land has been allocated and geotechnical investigations are being conducted.

"Today, the Cabinet has approved Kaynes' plant, with a capacity of 6.3 million chips per day. The plant will come up in 46 acres, it is a big plant and a large portion of the production will go for Kaynes Industries, it has already been booked," the minister said.

The plant will also cater to chips related to the power sector. The company has already acquired land in Sanand, Gujarat for the project, and construction will start soon.

The proposed investment for the unit is about ₹3,307 crore.

Chips produced in this unit will cater to a wide variety of applications, including industrial, automobile, electric vehicles, consumer electronics, telecom, and mobile phones.

"Power-related chips..chips used in automobiles and home appliances, will also be produced in this plant," Vaishnaw said, briefing reporters.