PM Modi Warns of Supply Chain Disruptions, Pushes for Semiconductor Self-Reliance

Addressing the gathering after Kaynes Semicon's OSAT facility inauguration in Sanand, the Prime Minister said the 21st century has brought multiple challenges, including the pandemic and ongoing conflicts, which have impacted the flow of goods and raw materials worldwide.

"Whether it is chips, rare earth minerals or energy, all have been affected due to conflicts," he said, noting that these disruptions are linked to the rapid development of humanity.

"Break in the supply chain and its flow will impact humanity's development," PM Modi said, adding that it is crucial for India to gain leadership in ensuring continuity and resilience in these critical sectors.

He recalled India's strategic decision during the Covid-19 pandemic to strengthen self-reliance and emerge as a global hub in semiconductors, alongside efforts in artificial intelligence, clean energy, electric vehicles, defence and electronics.

Referring to policy initiatives, the Prime Minister said the India Semiconductor Mission, launched in 2021, reflects India's confidence and ambition.

"This is not an industrial policy but an announcement of India's self-confidence. Its impact is in front of everyone," he said.

Under this mission, 10 semiconductor projects worth Rs 1.6 lakh crore are underway across six states, including projects by Kaynes Semicon and Micron Technology.

The Prime Minister said that the next phase, India Semiconductor Mission 2.0, announced in this year's Union Budget, will focus on domestic production of semiconductor materials and equipment, aimed at creating a full-stack semiconductor ecosystem in the country.

PM Modi also highlighted global partnerships to strengthen supply chains, including India's participation in Pax Silica.

"To achieve self-reliance in critical minerals, India has also launched the National Critical Minerals Mission, focusing on mining and production of these minerals," he said.

He added that a Rs 1,500 crore scheme has been introduced for recycling minerals and that a rare earth corridor covering Odisha, Andhra Pradesh, Tamil Nadu and Kerala will integrate mining, refining and manufacturing chains.

The PM said that India is creating a national repository of critical minerals and is executing these initiatives in mission mode.

"It would have been better if this work had started 30-40 years ago, but now India is working in mission mode. This decade is India's decade," he said.

- IANS