India to produce 1.5 crore chips daily at Sanand, emerging as major semiconductor hub: PM Modi
Sanand, July 4
Prime Minister Narendra Modi on Saturday inaugurated the third semiconductor plant in the country, marking a significant milestone in India's ambition to become a global semiconductor hub.
Addressing the event, PM Modi announced that India will soon achieve a production capacity of 1.5 crore (15 million) chips per day in Sanand, Gujarat, as the region transforms into a full-fledged semiconductor cluster.
Speaking at the inauguration of the CG Semi OSAT facility, the Prime Minister highlighted the rapid progress made in India's semiconductor ecosystem.
"This journey from foundation stone to commercial production is the result of the hard work of many youngsters," he said, crediting industry partners, the Gujarat government, and the dedicated workforce.
The plant has commenced commercial production of semiconductor packaging and is expected to produce 20 crore chips annually in the initial phase.
PM Modi revealed that the company aims to scale this up significantly to 500 crore chips per year.
He expressed strong confidence in the team, stating, "You are not going to stop here... I have faith that more than 1.5 crore chips will be produced from here every day."
The Prime Minister described the facility as a "symbol of dedicated efforts" and noted the diverse, mini-India-like environment within the plant premises, where workers from different languages, cultures, and backgrounds are contributing with high technical competence.
PM Modi underlined that the development of the semiconductor sector is part of a broader vision, which could not be realised earlier due to lack of will in previous UPA-led then Central government.
He recalled earlier plans to allocate 300-400 acres of land near Gandhinagar and Sanand for semiconductor projects. With the commissioning of this plant, a semiconductor cluster is now taking shape in Gujarat.
PM Modi outlined future plans for the cluster, including the arrival of companies for production, new testing labs, and supporting industries for machines and services.
"This is not happening in isolation," the Prime Minister said.
He pointed to India's success in mobile phone manufacturing, which has grown 33 times since 2014.
India is now the second-largest mobile phone manufacturer in the world. Overall electronics production has increased nearly 7 to 11 times during the same period. Once driven by the IT revolution, millions of Indian youths showcased their talent. Today, the semiconductor era is unlocking new opportunities in electronics manufacturing, innovation, and supply chain management, he said.
"Young women from Jharkhand, Madhya Pradesh, Kerala, Chhattisgarh, and other states are leading this transformation. From humble families and ITI backgrounds to receiving advanced training in Malaysia, they are now manufacturing world-class semiconductor chips in Gujarat. Their journey reflects India's rising confidence. With four semiconductor facilities set to start in 2026, the nation is firmly committed to building a developed India for the next generation," PM Modi said.
"Our strategy is not limited to making finished products. We aim to develop the entire value chain of semiconductors and electronics within India," he added.
This includes design, manufacturing, packaging, and testing - forming the roadmap for a developed India. PM Modi recalled that just a few years ago, India resolved to become a semiconductor hub through the "Design in India" initiative. Today, the country is witnessing the fruits of that vision with multiple plants becoming operational.
He congratulated the entire team of CG Semi, the Gujarat government, and all stakeholders involved in the project. Union Railway minister Ashwini Vaishnav, and Bhupendra Bhai patel, chief minister of Gujarat also spoke on the occasion.
The development is being seen as a major boost to India's "Make in India" and Atmanirbhar Bharat initiatives, positioning the country as an emerging player in the global semiconductor supply chain. The CG Semi OSAT facility is built in collaboration with US company Renesas Electronics and Thailand's Stars Microelectronics. The plant handles packaging and testing of semiconductor wafers.
— IANS
Reader Comments
Great initiative, but I hope the government also focuses on chip design and R&D, not just packaging. The real value is in designing the chips. Let's not just be assemblers again. Still, a good start.
I visited Sanand last year for work and saw the development happening there. The entire ecosystem—roads, power supply, water—is being upgraded. This is not just a plant; it's a revolution in the making. Proud moment for Gujarat and India! 🙏
As someone who works in the semiconductor industry in the US, I can tell you this is a very ambitious target. Producing 500 crore chips per year would require massive investment in supply chain and skilled labor. But if anyone can do it, it's India with its young workforce. Wishing the team success!
Loved the part about women from Jharkhand and Kerala being trained in Malaysia and now making chips in Gujarat. That's the real strength of India—diversity and talent. We need more such stories of empowerment. Kudos to the PM and the team! 🌟
I'm a bit skeptical about the "previous government lacked will" narrative. The semiconductor policy was actually discussed in 2007-08, but global conditions weren't favorable then. Still, better late than never. Let's hope this plant delivers on its promises and creates jobs for our youth.
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