India building complete electronics value chain, says PM at OSAT launch

The government's goal is to build a complete semiconductor ecosystem in India, from chip design to fabrication and packaging, PM Modi said

Prime Minister Narendra Modi on Saturday said India is building the entire electronics value chain from products and components to semiconductors, which is the roadmap to 'Viksit Bharat'.

The PM, who inaugurated CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility at Sanand near here, said semiconductor and AI revolutions would open up countless opportunities and urged young Indians not to miss the moment.

"India will not only manufacture chips, but the nation's youth will also use 'Made in India' chips to accelerate the Artificial Intelligence, robotics, and next-generation tech revolution" he said.

There is unwavering faith in the power and talent of India's youth, the PM said, adding whenever a new industrial revolution occurs globally, it creates the greatest number of opportunities for young people.

"The expansion of the semiconductor industry in India did not happen overnight. It is the next step in the electronics revolution that has taken place in India over the past decade," he said as he was handed the first semiconductor chips made at the company, to be exported to Japan.

Drawing a parallel with the IT revolution and rise of smartphone manufacturing, he said the current wave of semiconductor and AI technologies would create an entirely new world of skills and employment.

"The idea is yours, the support is mine," he told the youth.

"First products, then components and now semiconductors...India is building the entire electronics value chain. This is the roadmap to Viksit Bharat. This is the next phase of Make in India," Modi said.

He said his government's goal is to build a complete semiconductor ecosystem in India, from chip design to fabrication and packaging.

"The Semicon India programme is gathering rapid momentum... Step by step. Brick by brick. Chip by chip," he said. The inauguration of the commercial production facility reflected the government's commitment to making India a global semiconductor hub and advancing the 'Design in India' initiative, he added.

Recalling the project's journey from site selection in 2024 to commercial production, he said the rapid execution demonstrated India's ability to convert ambitious goals into reality through collective effort.

The PM said Sanand was emerging as a global semiconductor cluster, comparable with internationally known manufacturing ecosystems such as Silicon Valley in USA and Taiwan's Hsinchu Science Park.

He said chip packaging had already commenced at the facility and the ecosystem would soon attract specialised companies, chemical manufacturers, testing laboratories, machinery service industries, design centres and startups.

"The real strength of a cluster lies in its ripple effect. One industry gives birth to hundreds of related industries, creating millions of employment opportunities and transforming the regional economy," Modi said while pointing out that similar semiconductor clusters were taking shape in several states.

He said mobile phone production has increased 33-fold since 2014, overall electronics manufacturing has grown seven times and electronics exports have risen nearly elevenfold, helping India become the world's second-largest mobile phone manufacturer and exporter.

Modi said the country's vision extended beyond assembling finished products to becoming self-reliant in components and semiconductor chips that power the global electronics industry.

He said the next major milestone would be achieving self-reliance in critical minerals and advanced materials required for the sector.

Quoting a Gujarati proverb -- "Nishan chuk maaf, pan nahi maaf nichu nishan" (missing a high target is forgivable, but setting a low target is not) -- Modi said India must always pursue ambitious goals rather than think small.

He highlighted the role of women in the emerging semiconductor industry, recalling his interaction with young women technicians from Jharkhand, Madhya Pradesh, Kerala and Chhattisgarh, many of whom came from modest families and studied at Industrial Training Institutes (ITIs).

Several of them had never travelled abroad before being sent to Malaysia for advanced semiconductor training and were now contributing to India's chip manufacturing sector, Modi said.

Referring to his earlier announcement that four semiconductor facilities would become operational by 2026, Modi said production had already begun at three projects within six months, while the number of operational facilities was expected to reach five instead of four by 2026.

"This shows today's India not only sets big goals but also achieves them on time," he said.

Modi said the then Union government did not give him desired response when he tried to bring a semiconductor facility to Gujarat back when he was CM.

"Twenty years ago, I finalized land near Gandhinagar to set up a semiconductor plant and held discussions with some companies. But then, I don't know what happened to the (Union) government. They refused to move forward and our plan couldn't materialize," he said.

Modi assured global investors that India offered stable policies, clear decision-making and speedy execution, and said the government's reform agenda would continue to gather momentum with a strong focus on ease of doing business.

Addressing Indians aged between 18 and 20 years, he said his government's efforts were aimed at ensuring they would raise their families in a developed India by 2047.

The semiconductor sector would emerge as a major force driving the country's economic transformation, Modi said.