PM Modi: India's semiconductor clusters to drive job growth and economic transformation

Prime Minister Narendra Modi on Saturday inaugurated the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility in Gujarat’s Sanand, stating that semiconductor clusters are emerging across the country and that the current phase marks the beginning of large-scale employment and economic transformation.

Speaking at the event, Mr. Modi said the country is building the entire electronics value chain, from products and components to semiconductors, which will serve as the roadmap for Viksit Bharat. He noted that semiconductor clusters are not limited to Sanand but are coming up at multiple locations nationwide.

The Prime Minister emphasised that India’s youth would power the artificial intelligence, robotics and next-generation technology revolution with Made-in-India chips. He described the facility as a reflection of the government’s vision of “Design in India” and “Make in India”. He recalled that the foundation stone was laid in 2024, chip testing began in August 2025, and commercial production has now commenced.

Mr. Modi urged the country’s youth not to miss the opportunities presented by the coming era of artificial intelligence. “The youth of India should not lose this opportunity. I want to tell the youngsters of the country: ‘Your ideas, my support,’” he said.

He said the expansion of the semiconductor industry in India did not happen overnight, but is the next step in the electronics revolution that has taken place over the past decade. He noted that the first semiconductor chips from the facility are to be exported to Japan.

Recalling earlier phases, Mr. Modi said the IT revolution created opportunities for lakhs of Indians, followed by the smartphone and electronics manufacturing boom. “Now, the world is entering the era of semiconductors and artificial intelligence revolution that will create opportunities for countless people,” he said.

The CG facility is part of the India Semiconductor Mission and will handle assembly, packaging and testing of semiconductor chips. The company will supply chips to customers in India and abroad. Mr. Modi said the project was built in partnership with companies from Thailand and Japan, describing it as a model of technology, trust and collaboration that would strengthen India’s semiconductor sector.

He said the government’s goal is to build a complete semiconductor ecosystem in India, from chip design to fabrication and packaging. “I’m informed that this unit has the capacity to manufacture 20 crore chips annually and that the company aims to scale up production to more than 500 crore chips a year, which means 1.5 crore chips per day,” he said, expressing confidence that the company would achieve its target step by step.

The Prime Minister called the project a “success story” and a “revolution”. He highlighted that many women employees from rural areas, who completed ITI training, are now working at the plant. Many of them had never visited Delhi or Mumbai and had not held a passport before travelling to Malaysia for training. “They learnt advanced semiconductor manufacturing techniques there and are now part of India’s chip manufacturing sector,” he said.

Referring to the recent manufacture and flight of the C-295 aircraft from Vadodara, Mr. Modi said India has moved from celebrating bicycle manufacturers to manufacturing aircraft, though the development received little media attention. He stressed that India has transformed from a mobile phone importer to one of the world’s leading manufacturers and exporters, now the second-largest mobile phone manufacturer globally.