PM Modi launches Sanand chip plant, says India’s youth will drive AI revolution

Prime Minister Narendra Modi on Saturday said India is building the entire electronics value chain from products and components to semiconductors, describing it as the roadmap to Viksit Bharat and the next phase of Make in India.

The prime minister made the remarks while inaugurating the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat.

Calling the occasion a landmark moment in India’s semiconductor journey, Modi said the facility would strengthen the country’s chip manufacturing ecosystem, boost technological self-reliance and enhance India’s position in the global semiconductor value chain.

A landmark day for India’s semiconductor journey. The CG SEMI OSAT facility in Sanand will strengthen the chip manufacturing ecosystem, boost technological self-reliance and enhance India’s position in the global semiconductor value chain.
https://t.co/uZA59xO3bs

— Narendra Modi (@narendramodi) July 4, 2026

“Today’s event is proof that whatever India resolves to do, it firmly accomplishes,” he said.

The prime minister recalled that five years ago India set out to become a global hub for advanced technology through the principles of Design in India and Make in India.

“We successfully moved forward with the foundational mantra of Design in India and Make in India,” he said.

He noted that the foundation stone for the project was laid in 2024 and chip testing began by August 2025, describing the rapid progress as the result of sustained efforts by those involved in the project.

“This remarkable journey from foundation stone to production is definitely the result of the immense hard work of many colleagues,” Modi said.

The prime minister said interactions with employees at the facility reflected confidence among India’s young workforce.

Semiconductor और AI Revolution के इस दौर में अपने युवा साथियों से मेरा यह विशेष आग्रह… pic.twitter.com/iq57Nv1bgi

— Narendra Modi (@narendramodi) July 4, 2026

“Every young colleague I interacted with today is completely full of self-confidence,” he remarked.

He also highlighted the collaboration between Indian, Japanese and Thai partners, saying the venture represented technological trust and international cooperation.

“This integrated partnership is going to give entirely new momentum to India’s semiconductor journey,” he said.

The facility has entered commercial production with a capacity of 20 crore units annually, with a target of reaching 500 crore units annually.

“I congratulate the entire team, the state government, and the whole country for building this step by step, brick by brick, and chip by chip,” Modi said.

Referring to global innovation centres such as Silicon Valley, Hsinchu Science Park and Tsukuba Science City, the prime minister said strong industrial ecosystems emerge from integrated clusters rather than individual factories.

“Today, Sanand is firmly taking its steps in the same direction to establish such powerful clusters,” he observed.

He pointed to recent production activity by companies including Micron, Kaynes and CG Semi, saying the emergence of chemical manufacturers, testing laboratories, design centres and startups would create wider economic opportunities.

“This is the true power of a cluster, where one industry gives birth to ten, ultimately changing the economy of the entire region,” he asserted.

Modi said the growth of the semiconductor sector is the result of policies implemented over the past decade and forms part of a broader electronics transformation.

“This is the natural next step of the electronics revolution that has arrived in India over the last decade,” he noted.

He contrasted India’s earlier dependence on imported mobile phones with its current position as the world’s second-largest producer and exporter in the sector, saying production has increased thirty-three-fold.

“We deliberately started our journey with mobile phone manufacturing to eventually achieve these incredible milestones,” he observed.

According to the prime minister, overall electronics production has risen nearly seven times since 2014, while exports have increased eleven-fold.

“We have successfully and comprehensively strengthened the entire electronics manufacturing ecosystem,” he affirmed.

Modi said India’s objective is to establish a complete domestic value chain, extending from finished products to the semiconductors that power them.

“First the product, then components, and now the semiconductor; this is the definitive next phase of Make in India,” he asserted.

He reiterated that the country aims to develop the entire semiconductor ecosystem, including chip design, fabrication and packaging, while strengthening capabilities in critical minerals and advanced materials.

“Our goal is to build a complete semiconductor ecosystem in India, from chip design to fabrication and packaging,” he said.

The prime minister said semiconductor and artificial intelligence technologies would generate significant opportunities across multiple sectors.

“The era of the semiconductor and AI revolution is bringing countless opportunities spanning from research and design to supply chain management,” he remarked.

He urged young Indians to develop new skills and embrace emerging technologies.

“The youth of India must absolutely not lose this incredible opportunity to learn and execute something new,” he asserted.

Modi said India would not only manufacture chips but also deploy indigenous technology in future innovations.

“India will not only manufacture chips, but the nation’s youth will also use ‘Made in India’ chips to accelerate the Artificial Intelligence, robotics, and next-generation tech revolution,” he said.

He added: “Our youth will actively accelerate the next-gen tech revolution strictly utilizing Made in India chips.”

The prime minister also highlighted the participation of young women from tribal communities working at the facility after receiving advanced technical training in Malaysia.

“These daughters with truly extraordinary dreams are today an integral part of the Made in India chip manufacturing process,” he noted.

Concluding his address, Modi said India would continue pursuing reforms aimed at improving the ease of doing business and achieving the goal of becoming a developed nation by 2047.

“With a complete commitment to the ease of doing business, 140 crore Indians will definitely make the nation developed by 2047,” he affirmed.