PM Modi Inaugurates Semiconductor Facility in Gujarat, Says India’s Chip Ecosystem Will Drive Jobs and Growth

Prime Minister Narendra Modi inaugurated the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, reaffirming India's commitment to becoming a global semiconductor manufacturing hub. During the inauguration, the Prime Minister said the country's expanding semiconductor ecosystem will create countless jobs, strengthen manufacturing, and accelerate India's journey towards becoming a developed nation by 2047.

The facility, developed under the India Semiconductor Mission, marks another major milestone in India's semiconductor ambitions. It will undertake semiconductor chip assembly, packaging, and testing while supplying chips to customers in both domestic and international markets, including Japan.

PM Modi highlighted that India is not only building semiconductor plants but also creating complete semiconductor clusters across the country, which will support innovation, employment, and long-term economic growth.

Company Financials & Project Highlights

The Sanand semiconductor facility has been designed to become one of India's key chip manufacturing and testing centres.

Particulars	Details
Facility	CG Semi OSAT Plant
Location	Sanand, Gujarat
Mission	India Semiconductor Mission
Initial Capacity	20 Crore Chips Annually
Target Capacity	500 Crore Chips Annually
Commercial Production	Started
Export Markets	India, Japan & Global Customers

The company plans to gradually scale production from 20 crore chips annually to over 500 crore chips per year, equivalent to nearly 1.5 crore chips every day.

PM Modi Highlights India's Semiconductor Vision

Addressing the gathering, the Prime Minister said India is developing a complete semiconductor value chain covering chip design, fabrication, assembly, packaging, and testing. He described the current phase as the beginning of a new industrial revolution that will generate employment opportunities across manufacturing, electronics, artificial intelligence, and advanced technology sectors.

He noted that the project reflects the government's vision of "Design in India" and "Make in India", adding that semiconductor manufacturing will become a key pillar of India's future economic growth.

AI and Semiconductor Revolution to Create New Opportunities

PM Modi urged India's youth to prepare for emerging technologies such as Artificial Intelligence (AI), robotics, and semiconductor manufacturing, stating that the next technology revolution will create enormous career opportunities.

He encouraged young innovators to develop new ideas while assuring government support, emphasizing that India's youth will play a central role in powering the country's future technology ecosystem.

Global Collaboration Strengthens India's Chip Industry

The Sanand facility has been developed through partnerships with companies from Japan and Thailand, showcasing India's growing collaboration with global technology leaders.

The Prime Minister described the project as a model of international cooperation that combines technology, trust, and manufacturing expertise while strengthening India's semiconductor supply chain.

Skilled Workforce Driving Manufacturing Growth

PM Modi also highlighted the growing participation of skilled Indian workers, especially women, in semiconductor manufacturing.

Several employees working at the facility received advanced semiconductor manufacturing training overseas before joining production operations in India, demonstrating the country's increasing focus on developing a globally competitive technology workforce.

Market Analysis

India's semiconductor industry is entering a transformative growth phase as the government continues investing heavily in domestic chip manufacturing under the India Semiconductor Mission. Rising demand for semiconductors across smartphones, electric vehicles, consumer electronics, data centres, artificial intelligence, and industrial automation is creating long-term opportunities for manufacturers.

The commissioning of the Sanand OSAT facility strengthens India's position in the global semiconductor supply chain while reducing dependence on imports. As more semiconductor clusters become operational, the sector is expected to generate significant employment, attract foreign investment, and support the growth of India's electronics manufacturing ecosystem.

What Should Investors Watch?

Investors should closely monitor:

• Expansion of semiconductor manufacturing capacity
• New investments under the India Semiconductor Mission
• Growth in India's electronics manufacturing sector
• Global partnerships and technology collaborations
• AI and semiconductor demand trends
• Future government incentives for chip manufacturing

These factors are expected to play a crucial role in shaping India's long-term semiconductor ecosystem.

Key Takeaways

Highlights	Details
Facility	CG Semi OSAT
Location	Sanand, Gujarat
Mission	India Semiconductor Mission
Initial Capacity	20 Crore Chips Per Year
Target Capacity	500 Crore Chips Per Year
Commercial Production	Commenced
Key Focus	Chip Assembly, Packaging & Testing
Growth Drivers	AI, Electronics, EVs & Semiconductor Manufacturing

What did PM Modi inaugurate in Gujarat?

Prime Minister Narendra Modi inaugurated the CG Semi OSAT semiconductor facility in Sanand, Gujarat.

What is the production capacity of the new semiconductor plant?

The facility will initially manufacture 20 crore chips annually, with plans to scale production to 500 crore chips per year.

What is the India Semiconductor Mission?

It is the Government of India's flagship initiative to develop a complete domestic semiconductor ecosystem covering chip design, manufacturing, assembly, testing, and packaging.

Why is the Sanand semiconductor facility important?

The plant strengthens India's semiconductor manufacturing capabilities, supports electronics production, creates skilled jobs, and enhances India's role in the global semiconductor supply chain.