NEW DELHI: The government on Monday approved a proposal of Kaynes to set up a semiconductor unit in Sanand, Gujarat with 6.3 million chips per day capacity, entailing an investment of Rs 3,307 crore.

Announcing the decisions of the Union Cabinet, IT Minister Ashwini Vaishnaw noted that a complete semiconductor ecosystem is coming up in India.

"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 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 Rs 3,307 crore.

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