PM Modi Opens Semiconductor Facility, Backs India's Chip Ambitions

The Prime Minister said the newly inaugurated OSAT facility has already started commercial chip packaging and is expected to manufacture around 20 crore semiconductor units annually.

India has taken another major step towards becoming a global semiconductor manufacturing destination with the inauguration of the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. Prime Minister Narendra Modi described the project as a reflection of the country's determination to turn ambitious plans into reality, saying India's growing semiconductor ecosystem is creating fresh opportunities for technology, manufacturing and employment while strengthening its position in the global electronics industry.

Speaking at the inauguration, the Prime Minister said the facility represents more than a manufacturing unit because it symbolises India's commitment to building an end-to-end semiconductor ecosystem under the vision of Design in India and Make in India. He said the country's progress in advanced technology is moving at an unprecedented pace and will play a crucial role in achieving the goal of Viksit Bharat by 2047.

Sanand emerges as India's new semiconductor hub

Prime Minister Modi recalled that the foundation stone for the Sanand facility was laid in 2024 and chip testing began by August 2025, describing the rapid transition from construction to commercial production as an example of India's growing execution capabilities. He congratulated the engineers, technicians and workers who helped bring the project into operation within a short period.

The Prime Minister said the newly inaugurated OSAT facility has already started commercial chip packaging and is expected to manufacture around 20 crore semiconductor units annually. He expressed confidence that production would eventually increase to 500 crore units every year as the ecosystem expands.

During his visit to the facility, the Prime Minister interacted with young professionals working at the plant and praised their confidence and enthusiasm. He said the energy displayed by the workforce reflected the aspirations of a new generation ready to contribute to India's technological transformation.

He also highlighted the collaboration between Indian, Japanese and Thai partners in establishing the facility, describing it as a model of international cooperation built on technological trust. According to him, such partnerships will accelerate India's journey towards becoming an important player in the global semiconductor supply chain.

Semiconductor ecosystem expected to create wider opportunities

The Prime Minister stressed that successful technology industries are built through integrated ecosystems rather than standalone factories. Referring to global innovation centres such as Silicon Valley in the United States, Hsinchu Science Park in Taiwan and Tsukuba Science City in Japan, he said Sanand is steadily developing into a similar industrial cluster where manufacturing, research and innovation can grow together.

He noted that several major companies, including Micron, Kaynes and CG Semi, have recently started operations in the region, creating the foundation for a broader ecosystem that will attract chemical manufacturers, testing laboratories, design centres, component suppliers and technology startups.

According to the Prime Minister, such industrial clusters generate a multiplier effect where one investment encourages several others, leading to stronger regional economies and large-scale job creation. He said the semiconductor sector is expected to create employment opportunities not only in manufacturing but also in research, product design, logistics, supply chain management and advanced engineering.

The Prime Minister explained that the growth currently being witnessed is not accidental but the result of carefully planned policies introduced over the past decade to strengthen India's electronics manufacturing capabilities.

From mobile manufacturing to advanced chip production

Tracing India's manufacturing journey, Prime Minister Modi said the country first focused on building a strong mobile phone manufacturing base before moving towards components and now semiconductor production. He noted that mobile phone manufacturing has increased thirty-three times over the past decade, making India the world's second-largest producer and exporter in the sector.

He added that overall electronics production has increased nearly sevenfold since 2014, while exports have grown eleven times during the same period. These achievements, he said, have created the foundation needed for India to move into advanced semiconductor manufacturing.

The Prime Minister said the government's objective is not limited to assembling electronic products but extends to manufacturing the critical chips that power technologies ranging from smartphones and automobiles to artificial intelligence and robotics. He also stressed the importance of building domestic capabilities in semiconductor materials and critical minerals to strengthen supply chain resilience.

Addressing young people, the Prime Minister said every major technological revolution creates new employment opportunities for those willing to learn new skills. He encouraged students, researchers and professionals to prepare themselves for careers in semiconductor manufacturing, artificial intelligence, robotics and related technologies.

He also shared the stories of young women from tribal communities working at the Sanand facility after receiving advanced technical training in Malaysia. He described their journey as an example of how India's technological progress is creating opportunities for talented youth from diverse backgrounds to participate in some of the world's most advanced manufacturing processes.

Concluding his address, Prime Minister Modi assured investors that India will continue providing policy stability, faster decision-making and a business-friendly environment to support high-technology industries. He said the country's semiconductor programme is gaining momentum with each new facility and expressed confidence that innovation, manufacturing and skilled talent will together help India emerge as a global semiconductor powerhouse while contributing to the vision of a developed India by 2047.