Semiconductor development in India will create countless jobs, says PM

Prime Minister Narendra Modi on Saturday (June 4, 2026) said that India is giving birth to semiconductor clusters across the country and described the current phase as the start of large-scale economic and employment transformation. He said the country is building the entire electronics value chain, from products and components to semiconductors, which will serve as a roadmap for Viksit Bharat.

He said semiconductor clusters were emerging not only in Sanand but also in several places across the country.

Mr. Modi, who inaugurated CG’s Semi-Outsourced Semiconductor Assembly and Testing (OSAT) facility at Sanand, Gujarat, also said that India’s youth will power artificial intelligence, robotics and next-generation technology revolution with chips made in India.

He said the factory reflected the government’s vision of ‘Design in India’ and ‘Make in India’ and noted that it laid the foundation stone of the project in 2024, chip testing began in August 2025 and commercial production has now begun.

Call to youth

Mr. Modi said the coming era of artificial intelligence would open new avenues in skills and expertise, and urged Indian youth not to miss this opportunity. “The youth of India should not lose this opportunity. I want to say to the youth of the country: ‘Your ideas, my support’,” Mr. Modi said.

He said the expansion of India’s semiconductor industry did not happen overnight. “This is the next step in the electronics revolution that has taken place in India over the last decade,” he said while receiving the first semiconductor chips manufactured by the company for export to Japan.

First, it was the IT revolution that created opportunities for thousands of Indians to showcase their talent, he said. Then, the boom in smartphone and electronics manufacturing opened new avenues for employment and innovation. “Today, the world is entering the era of semiconductor revolution and artificial intelligence that will create opportunities for countless people. »

The CG facility is part of the India Semiconductor Mission and will undertake assembly, packaging and testing of semiconductor chips. The company will start supplying the chips to its customers in India and abroad. Mr. Modi said the project was built in partnership with Thai and Japanese companies and described it as a model of technology, trust and collaboration that would strengthen India’s semiconductor sector.

He also said the government’s aim was to build a complete semiconductor ecosystem in India, from chip design to manufacturing and packaging. “I have been informed that this unit has the capacity to manufacture 20 crore chips per year and the company aims to increase its production to over 500 crore chips per year, which means 1.5 crore chips per day,” he said, expressing confidence that the company would achieve its target in the near future “step by step, brick by brick and chip by chip”.

He called the project a “success story” and a “revolution”. He said many women employees from upcountry who had completed their ITI training were now working at the factory. He said many of them had never visited Delhi or Mumbai and never held a passport before traveling to Malaysia for training. “They learned advanced semiconductor manufacturing techniques there and are now part of the Indian chip manufacturing sector.”

Referring to the recent manufacturing and flight of the C-295 aircraft from Vadodara, the Prime Minister said India had moved from celebrating the arrival of bicycle manufacturers to manufacturing aircraft, although this development had not received much media attention.

Highlighting the country’s manufacturing growth, Mr Modi said India has evolved from being an importer of mobile phones to one of the world’s leading manufacturers and exporters, adding that the country is now the second largest manufacturer and exporter of mobile phones in the world. “I don’t keep my vision small. My aspirations are always big. Even when I dream of a statue, I dream of creating the tallest statue in the world,” Mr. Modi said, referring to the Statue of Unity in Gujarat.

He said the government’s focus on ease of doing business was helping to create an enabling environment for industrial growth. He urged the industry to set ambitious targets, saying that even if the targets were not achieved, the country must continue to strive to move forward.

“The work carried out in the sector will speak for itself and contribute to the goal of Viksit Bharat-2047,” Mr. Modi added.