India Strengthens Global Chip Supply Chain as Modi Inaugurates Kaynes Semiconductor Plant in Gujarat

India’s semiconductor ambitions gained fresh momentum today as Prime Minister Narendra Modi inaugurated the Kaynes Technology semiconductor plant in Sanand, marking the start of production at the facility. The milestone comes just a month after the launch of Micron’s plant in the same city, underscoring the rapid pace of India’s chip journey.
“This is not merely a coincidence, it is proof of the speed at which India’s semiconductor ecosystem is developing,” the Prime Minister remarked, congratulating Kaynes Technology, the Gujarat government, and the workforce behind the project.

A Bridge from Sanand to Silicon Valley

India’s semiconductor industry is thriving across different states, generating new opportunities for countless youngsters. We are now working on Semiconductor Mission 2.0 to add further scale to these efforts. pic.twitter.com/O900MQga19

— Narendra Modi (@narendramodi) March 31, 2026

The new facility will manufacture Intelligent Power Modules (IPMs), with a significant portion of output already booked for export to a California-based company. Modi described this as a symbolic “bridge” between Sanand and Silicon Valley, noting that the modules will power electric vehicles andheavyindustry worldwide.
“This is not just about one product, it is about India becoming a reliable semiconductor supplier in the global market,” he said, emphasizing the strategic role of IPMs in strengthening both India’s EV ecosystem and global industrial supply chains.

India-Semiconductor Mission: From Vision to Scale

Modi recalled that India’s resolve to become a global semiconductor hub was born during the COVID-19 pandemic, leading to the launch of the India-Semiconductor Mission in 2021. Today, projects worth over ₹1.6 lakh crore are underway across six states, including Kaynes and Micron.

He highlighted the indigenous Dhruv 64 microprocessor, designed for 5G infrastructure, automotive electronics, and industrial automation, as proof of India’s growing capacity to design and manufacture across the semiconductor value chain.

Looking ahead, India-Semiconductor Mission 2.0, announced in this year’s Union Budget, will focus on domestic production of semiconductor equipment and materials, aiming to build a full-stack ecosystem.

Building Workforce and Investor Confidence

The Prime Minister stressed the importance of a future-ready workforce, noting that India is on track to train over 85,000 design professionals. Through initiatives like the Chips to Startup programme, nearly 400 universities and startups have already designed and manufactured over 55 chips.
India’s semiconductor market, currently valued at $50 billion, is projected to cross $100 billion by 2030, with strong investor enthusiasm fueling growth. Modi reaffirmed India’s target to manufacture the majority of chips domestically, reducing reliance on imports.

Securing Raw Materials and Global Partnerships

Parallel efforts are underway to secure resilient raw material supply chains. India has joined Pax Silica, launched the National Critical Minerals Mission, and announced a Rare Earth Corridor across coastal states. These steps, Modi said, are crucial to ensuring long-term sustainability in chip production.

India’s ‘Techade’ Vision

Calling this decade India’s “Techade,” Modi linked semiconductor progress to broader technological leadership in AI, clean energy, defence, and quantum computing. He pointed to landmark reforms such as opening the space sector to private players, the SHANTI Bill in nuclear energy, and mission-mode investments in quantum computing as evidence of India’s determination to lead the global tech landscape.
“India is making unprecedented investments and reforms in every critical technology. This is a tremendous opportunity for investors across the world,” he affirmed.

Factory of the World

Expressing confidence that Kaynes Technology’s products will strengthen India’s role as a “factory of the world,” Modi reiterated the government’s commitment to improving Ease of Doing Business, Manufacturing, and Logistics.

With the Sanand plant now operational, India’s semiconductor journey has taken another decisive step toward reshaping global supply chains and positioning itself as a trusted hub for next-generation technology.

IoT Push: China's Fibocom Partners Kaynes to Begin India Manufacturing by Mid-2026

Shenzhen, China-based Fibocom, a global provider of wireless communication modules, is preparing to commence sales of Made-in-India IoT products in collaboration with Kaynes Technology starting Q2 2026.

Founded in 1999, Fibocom is a publicly listed company and had raised $28M from Intel in earlier its earlier stages.

Key Highlights

• Partnership roots: Fibocom partnered with Bengaluru-based Kaynes Technology in 2025 to strengthen India’s electronics and semiconductor manufacturing ecosystem.
• Strategic alignment: This move supports India’s Make in India and Atmanirbhar Bharat initiatives, aiming to reduce reliance on imports and boost local production.
• Market impact: The collaboration is expected to accelerate the availability of locally manufactured IoT modules and solutions, catering to India’s rapidly expanding 5G and AI-driven industries.
• Global positioning: By producing in India, Fibocom intends to reinforce the “Made in India” brand internationally, while meeting domestic demand for IoT components more efficiently.

Why This Matters

• For India: Strengthens the country’s role in the global IoT supply chain and supports semiconductor ecosystem growth.
• For Fibocom: Enhances competitiveness by leveraging cost-effective, high-quality local manufacturing.
• For Enterprises: Ensuregs faster access to IoT modules tailored for Indian networks and applications.

Fibocom can differentiated from its competitors as it is the first domestic wireless communication module company to achieve dual listing in Shenzhen and Hong Kong (“A+H” listing in 2025). The is essentially a bridge between IoT hardware and AI-driven connectivity, positioning itself as a global leader in wireless modules while expanding into edge AI solutions.

Fibocom’s India strategy

Fibocom’s India strategy is centered on building a strong local manufacturing base through its partnership with Kaynes Technology, while aligning closely with national initiatives like Make in India and Atmanirbhar Bharat. In August 2025, Fibocom announced its collaboration with Kaynes, a leading Indian electronics and semiconductor manufacturer, to establish production facilities in Karnataka, Hyderabad, and Gujarat. These facilities are equipped with advanced SMT lines, automated testing systems, and precision assembly equipment, enabling large-scale production of IoT modules within India.

This partnership is designed to localize IoT manufacturing, reduce reliance on imports, and ensure faster delivery of products tailored to Indian networks and applications. By producing domestically, Fibocom not only strengthens India’s semiconductor ecosystem but also creates jobs and supports skill development, contributing to the broader policy goals of technological sovereignty and industrial growth.

The strategy also positions India as a competitive hub in the global IoT supply chain. Fibocom intends to brand its products as “Made in India,” reinforcing India’s role internationally while meeting the rising domestic demand driven by 5G, AI, smart cities, and connected industries. For enterprises, this means quicker access to cost-effective, locally optimized IoT modules. For Kaynes, the partnership elevates its standing as a key player in India’s electronics and semiconductor manufacturing landscape.