Prime Minister Narendra Modi inaugurated India's third semiconductor plant on Saturday, July 4, 2026. He praised the country's evolving electronics ambitions that have shifted from assembling phones to domestically packaging chips. Speaking at the launch of the CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, Modi emphasized that the plant marks India's decade-long push in edging higher in the sector’s value chain.
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PM Modi pointed to India's mobile manufacturing growth as the foundation for this shift, noting that phone production has grown approximately 33 times since 2014. It made India the world's second-largest mobile phone manufacturer and exporter. Overall, electronics production has increased close to sevenfold over the same period, while electronics exports have grown nearly elevenfold.
"The expansion of the semiconductor industry in India did not happen overnight. It is the next step in the electronics revolution that has taken place in India over the past decade," said Modi.
"First products, then components and now semiconductors....India is building the entire electronics value chain. This is the roadmap to Viksit Bharat. This is the next phase of Make in India," he further added.
The Rs. 7,500 crore CG Semi facility has begun commercial production of semiconductor packaging, with an initial annual target of 200 million chips. Modi said he was confident the plant would soon scale toward a broader national target of 500 million chips a year. He separately floated an ambitious daily output figure of 1.5 crore (15 million) chips once the Sanand cluster is fully built out.
The Prime Minister credited the project as a collaboration between Indian, Japanese, and Thai industry partners. He described the facility's diverse workforce, including women trained in states like Jharkhand, Madhya Pradesh, and Chhattisgarh. Some of these employees received advanced training in Malaysia, and he called them representatives of a ‘Mini India’ operating within a single plant.
Modi tied the Sanand launch to a broader national roadmap, noting that four operational semiconductor facilities are expected in 2026 alone. He said the government's goal extends across design, manufacturing, packaging, and testing capabilities entirely within India. He referred to this strategy as the next phase of Make in India and a building block toward a ‘Viksit Bharat,’ or developed India, vision.
He also pointed to India's parallel efforts to secure domestic access to critical and high-tech minerals needed to support long-term chip manufacturing.
Modi used part of his address to contrast the current pace of semiconductor investment with what he described as a lack of follow-through on similar plans under previous governments. He referenced previous proposals that earmarked land near Gandhinagar and Sanand for chip projects but didn't materialize.
Union Railway Minister Ashwini Vaishnaw and Gujarat Chief Minister Bhupendra Patel also spoke at the event. Both leaders reinforced the state's positioning as an emerging hub within India's broader semiconductor mission.