Electronics manufacturing company Kaynes Technology has acquired land in Sanand to establish its outsourced semiconductor assembly and test (OSAT) unit, according to a news report.

As per the news report, the company plans to invest around Rs 5,000 crore in this chip project.

This move is significant as Kaynes, through its subsidiary Kaynes Semicon, had initially announced plans to build the semiconductor plant in Telangana with a capital expenditure of about Rs 3,000 crore.

It is also learned that even with a new project, Kaynes is not abandoning its Telangana unit. The Telangana facility will house a couple of chip assembly lines, while the more advanced chip assembly and test operations will be based in Gujarat.

Kaynes has also applied under the Rs 76,000 crore semiconductor incentive scheme for the Gujarat project and is awaiting approval from the government