Kaynes Technology shares rally 9% after Union Cabinet gives green light to semiconductor unit
“We wish to inform you that Union Cabinet chaired by Honourable Prime Minister of India, Shri Narendra Modi approved the proposal of Kaynes Semicon Private Limited, a wholly owned subsidiary of Kaynes Technology India Limited, to set up a semiconductor unit at Sanand, Gujarat through its press release dated 02nd September, 2024,” the company said in a filing to the exchanges.
Mysuru-based Kaynes Semicon became the fourth company in the country to receive an OSAT approval. The investment for the project is expected to be around Rs. 3,307 crore and the capacity of this unit will be 63 lakh chips per day.
The chips produced in this unit will cater to a wide variety of applications which include segments such as industrial, automotive, electric vehicles, consumer electronics, information technology telecom mobile phones, etc.
50% of the investment, which is Rs. 1,653.5 crore, will come from the Centre, 20% from the Gujarat government, which is Rs. 661.4 crore, and the rest 30% of the investment, which is Rs. 992.1 crore will be made by the company. Kaynes raised funds in December last year for the same, as reported by ET earlier.
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The programme for the development of the semiconductors and display manufacturing ecosystem in India was notified in December 2021 with a total outlay of Rs. 76,000 crores.
In June, 2023, the Union Cabinet approved the first proposal for setting up a semiconductor unit in Sanand, Gujarat. In February 2024, three more
