'A dream of over 20 years fulfilled': PM Modi inaugurates semiconductor plant in Gujarat

Prime Minister Narendra Modi on Saturday inaugurated the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility in Gujarat's Sanand, describing the project as the fulfilment of a dream he first envisioned more than two decades ago.

Addressing the gathering, PM Modi said he had planned to establish a semiconductor manufacturing facility in Gujarat nearly 20 to 22 years ago, when the sector received little attention in India.

He recalled identifying land near Gandhinagar and Prantij and holding discussions with companies, but the project could not move forward at the time.

"I am especially delighted today because a dream I had more than 20 years ago has finally been realised. At that time, hardly anyone in the country spoke about semiconductors, and when I did, many in the media mocked me. Although it could not happen then, I feel immense satisfaction that it has become a reality today," PM Modi said.

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India targets 500 million chips annually

According to an ANI report, PM Modi said the Sanand facility marks another important step in India's efforts to become a global semiconductor hub. He expressed confidence that the plant would soon achieve its production target of 200 million chips every year.

PM Modi said the country's broader goal is to manufacture 500 million semiconductor chips annually under the Semicon India programme.

"Step by step, brick by brick, and now chip by chip, India is moving forward. I am confident that we will achieve the target of producing 500 million chips every year," he said.

Developed under the India Semiconductor Mission with an investment of more than Rs 7,500 crore, the OSAT facility is India's third semiconductor plant to begin commercial chip packaging operations, News on AIR reported.

Building the complete electronics value chain

Highlighting the growth of India's electronics sector, PM Modi said the country's semiconductor expansion is the result of a decade-long transformation in manufacturing.

He noted that India has become the world's second-largest mobile phone manufacturer and exporter, with electronics production increasing nearly seven-fold since 2014 and electronics exports rising about eleven times during the same period.

PM Modi said India is now progressing from manufacturing finished products to electronic components and semiconductors, creating a complete electronics value chain within the country.

"First product, then components, and now semiconductors. The entire value chain of electronics will be in India. This is the roadmap for a developed India and the next phase of the 'Make in India' initiative," he said.

Global partnerships driving semiconductor growth

According to the report, PM Modi said India had resolved five years ago to emerge as a global semiconductor hub through the "Design in India" and "Make in India" initiatives.

Recalling the project's timeline, he said he laid the foundation stone of the Sanand plant in 2024, chip testing began in August 2025, and commercial operations have now commenced.

PM Modi also described the facility as a symbol of international collaboration, saying the project brings together industry partners from India, Japan and Thailand.