Prime Minister Narendra Modi inaugurated a semiconductor assembly and test facility in Sanand, Gujarat, on Friday.
The opening of the plant marks a strategic push to reduce reliance on imported hardware and establish India as a global hub for electronics manufacturing. By focusing on indigenous chip production, the government intends to secure the supply chain for artificial intelligence, and other critical technologies.
The new facility represents an investment of Rs 7,600 crore [1]. During the visit, Modi met with young engineers and professionals who are tasked with managing the technical operations of the site. He said that the integration of local talent and advanced infrastructure is essential for the country's technological sovereignty.
Modi said, "Youth will power AI with indigenous chips." He said that the young entrepreneurs involved in these projects are the driving force behind the country's innovation-led growth story.
The Prime Minister compared the growth of the Sanand region to established international tech hubs. He said, "Sanand is emerging as a global semiconductor cluster, comparable with Silicon Valley and Taiwan's Hsinchu Science Park."
This development is part of a broader national effort to build a comprehensive semiconductor ecosystem. The facility is designed to handle the assembly and testing phases of chip production, which are critical steps before semiconductors are integrated into consumer electronics, and industrial machinery. By developing these capabilities locally, India seeks to attract further foreign investment and foster a homegrown industry of chip designers and engineers.
“Youth will power AI with indigenous chips.”
The establishment of a high-value assembly and testing facility in Gujarat signals India's transition from a consumer of semiconductors to a producer. By targeting the 'backend' of the chip pipeline, India is attempting to create a viable entry point into the global semiconductor value chain, which is currently dominated by a few East Asian nations. This move is intended to provide the hardware foundation necessary for the country to scale its AI ambitions without being vulnerable to external supply shocks.
