India’s semiconductor push will create countless jobs: PM

Prime Minister Narendra Modi with Union Minister Ashwini Vaishnaw during the inauguration of the CG Semi Outsourcing Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat on July 4, 2026. | Photo credit: PTI

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

He said that semiconductor clusters are emerging not only in Sanand but in many places across the country.

Inaugurating the CG Semi Outsourcing Semiconductor Assembly and Test (OSAT) facility in Gujarat’s Sanand, Mr Modi also said that India’s youth will drive artificial intelligence, robotics and next-generation technology revolution with Made-in-India chips.

He said the plant reflected the government’s vision of “Design in India” and “Make in India”, noting that the foundation stone for the project was laid in 2024, that chip testing began in August 2025 and that commercial production had now begun.

Appeal to the youth

Mr. Modi said that the coming era of artificial intelligence would open new avenues for skills and expertise and urged the 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 the semiconductor industry in India did not happen overnight. “This is the next step in the electronic revolution that has taken place in India over the last decade,” he said as he was handed over the first semiconductor chips made by the company to be exported to Japan.

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

The CG facility is part of the India Semiconductor Mission and will conduct 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 collaboration with companies from Thailand and Japan, describing it as a model of technology, trust and cooperation that will strengthen India’s semiconductor sector.

He also said that the government aims to build a complete semiconductor ecosystem in India, from chip design to manufacturing and packaging. “I am informed that this unit has the capacity to produce 20 million chips per year and that the company aims to increase production to more than 500 million chips per year, which means 1.5 million chips per day,” he said, expressing confidence that the company will achieve its goal 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 the plant now has many female employees from the interior of the country who have completed ITI training. He said many of them had never visited Delhi or Mumbai and never had a passport before traveling to Malaysia for training. “They learned advanced semiconductor manufacturing techniques there and are now part of India’s chip manufacturing sector.”

Referring to the recent production and flight of the C-295 aircraft from Vadodara, the Prime Minister said that India had moved from celebrating the arrival of bicycle manufacturers to producing aircraft, although the development did not receive much media attention.

Highlighting the country’s manufacturing growth, Mr. Modi said India has transformed from 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. “My vision is not small. My aspirations are always big. Even if I dream of a statue, I dream of creating the world’s tallest statue,” Mr Modi said, referring to the Statue of Unity in Gujarat.

He said the government’s focus on ease of doing business helps create an environment for industrial growth. Urging the industry to set ambitious targets, he said even if the targets were not met, the country should continue to strive to move forward.

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

Published – 4 Jul 2026 22:56 IST