29 September 2025 : In a major boost to India’s ambitions of becoming a global semiconductor hub, UST, a leading digital transformation solutions company, has partnered with Kaynes Technology to establish a semiconductor manufacturing facility in Gujarat with a planned investment of ₹3,330 crore.
The announcement aligns with India’s Semicon India Mission, which aims to reduce dependence on chip imports and strengthen the country’s position in the global electronics supply chain.
Details of the Investment
According to reports, UST and Kaynes will jointly invest ₹3,330 crore in the state-of-the-art facility. The unit will focus on manufacturing semiconductor components for multiple sectors including:
- Automotive
- Consumer electronics
- Telecommunications
- Industrial applications
The project is expected to generate thousands of direct and indirect jobs, significantly boosting Gujarat’s economy and advancing India’s self-reliance in the high-tech manufacturing sector.
Why Gujarat?
Gujarat has rapidly emerged as a preferred destination for high-tech investments thanks to:
- A proactive state government offering policy incentives.
- A strong industrial ecosystem with access to skilled labor.
- Proximity to major ports and logistics hubs.
- Existing initiatives to build a semiconductor ecosystem under the central government’s PLI (Production-Linked Incentive) scheme.
Chief Minister Bhupendra Patel welcomed the investment, calling it a “game-changer for Gujarat’s industrial future.”
UST’s Role
UST, a multinational company headquartered in California with a strong presence in India, brings global expertise in digital engineering, chip design, and advanced technologies. Its entry into chip manufacturing represents a strategic expansion into a sector critical for India’s Digital India and Make in India visions.
“Our partnership with Kaynes marks a bold step into semiconductor manufacturing. Together, we aim to contribute to India’s technological independence while creating job opportunities and innovation in Gujarat,” a UST spokesperson said.
Kaynes’ Contribution
Kaynes Technology, an Indian electronics manufacturing company with a proven track record in design-led production, will spearhead the operational side of the facility. Kaynes has experience in end-to-end electronics system design and manufacturing, making it a natural partner for such a high-tech project.
“Semiconductors are at the heart of every digital product today. This plant will help bridge the gap in India’s chip demand while contributing to global supply chains,” said the Kaynes management team.
Impact on India’s Semiconductor Mission
India currently imports over 90% of its semiconductor requirements, mostly from Taiwan, South Korea, and China. Global disruptions, such as the COVID-19 pandemic and geopolitical tensions, highlighted the risks of over-dependence on imports.
This investment is expected to:
- Strengthen India’s supply chain resilience.
- Position Gujarat as a leading semiconductor hub alongside states like Tamil Nadu and Karnataka.
- Encourage other global players to collaborate with Indian firms.
- Reduce long-term import bills for industries dependent on chips.
Job Creation and Skill Development
The plant is expected to generate:
- High-skilled jobs in engineering, chip design, and electronics.
- Training opportunities for graduates and young professionals.
- Indirect employment in logistics, support services, and allied industries.
Local institutions in Gujarat are also expected to collaborate with UST and Kaynes to create specialized training programs for students in semiconductor technology.
Industry Reactions
Industry experts welcomed the move as timely and strategic. Semiconductor demand is projected to grow exponentially in India due to rising smartphone usage, the growth of electric vehicles, and the expansion of 5G networks.
“The UST-Kaynes partnership reinforces confidence in India’s potential to emerge as a semiconductor hub. Global companies are taking note of India’s policies and infrastructure push,” said Ramesh Chopra, a technology analyst.
Looking Ahead
Construction of the Gujarat semiconductor plant is expected to begin later this year, with commercial production likely to start within the next 2–3 years. As the facility comes online, it will be one of the few large-scale semiconductor manufacturing units in India.
The collaboration between UST and Kaynes also signals a shift in India’s industrial strategy—from being primarily a service-driven economy to becoming a manufacturing and innovation powerhouse in cutting-edge technologies.
Summary
UST and Kaynes will invest ₹3,330 crore to build a semiconductor unit in Gujarat, boosting India’s chip-making capacity, creating jobs, and supporting the government’s push for technological self-reliance.