Three semiconductor packaging and testing facilities are now operational in the Sanand industrial zone of Gujarat [1].

This development establishes India’s first industrial-scale semiconductor packaging cluster. By developing domestic outsourced semiconductor assembly and test (OSAT) capacity, India aims to reduce reliance on foreign imports and attract global technology partners under the national Semiconductor Mission [3, 5].

The cluster includes facilities from Kaynes Semicon, CG Semi, and Micron Technology [1]. The project received formal approval from the Union Cabinet on Sept. 23, 2024 [4]. Prime Minister Narendra Modi scheduled the inauguration of the Kaynes Semicon facility for March 31, 2026 [5].

Kaynes Semicon's facility represents a significant financial commitment, with an announced investment of approximately ₹3,300 crore [3]. This site also serves as a milestone for the development of India’s first post-quantum cryptography personalization center, involving partnerships with SEALSQ Corp [2].

Operational efficiency at the site has already seen early success. In a Japanese quality audit, tribal women operators achieved a score of 92% [2]. This performance indicates the potential for local workforce integration into high-precision technical roles.

The transition to operational status for these three sites follows a rapid development timeline from the initial 2024 approval to the early 2026 operational window [2, 5]. The concentration of these firms in Sanand creates a localized ecosystem for the final stages of chip production, packaging and testing, which are critical before semiconductors can be integrated into electronic devices [1].

“Three semiconductor packaging and testing facilities are now operational in the Sanand industrial zone of Gujarat.”

The establishment of the Sanand cluster shifts India from being a primary consumer of semiconductors to a participant in the mid-stream supply chain. While chip fabrication (fabs) requires significantly more capital and infrastructure, OSAT facilities provide a more accessible entry point for India to build technical expertise and attract foreign direct investment in the hardware sector.