India’s Chip Ecosystem Expanding At Unprecedented Pace, Says PM Modi

Prime Minister Narendra Modi on Tuesday said the near-simultaneous start of production at two semiconductor facilities underscores the speed and expansion of India’s chip ecosystem and its growing integration with global supply chains.

Speaking at the inauguration of Kaynes Semicon’s OSAT facility in Sanand, PM Modi pointed to the timing of recent developments, noting that production began at Micron Technology’s unit on February 28, followed by the Sanand plant on March 31.

The Prime Minister said the developments signal the rapid progress of India’s semiconductor ambitions and its alignment with global supply chains.

He emphasised that the entry of an Indian company into chip manufacturing marks a significant milestone, adding that more domestic firms will likely collaborate internationally in the future.

He linked the initiative to the ‘Make in India, Make for the World’ vision and described the Sanand facility as a bridge connecting India with global technology hubs like Silicon Valley.

Production Capacity and Export Focus

The plant will manufacture Intelligent Power Modules (IPMs), with a substantial portion already allocated for export, including supplies to a California-based company.

Set up with an investment of around Rs 3,300 crore, the OSAT facility will likely reach a production capacity of 6.3 million units per day.

The modules produced will support electric vehicles, industrial systems and global manufacturing ecosystems.

PM Modi also highlighted India’s progress in semiconductor design and innovation, citing the development of advanced microprocessors such as Dhruv64 for applications in 5G infrastructure, automotive electronics and industrial automation.

He noted that over 85,000 design professionals are set to be trained, more than 400 universities and startups have access to advanced tools, and over 55 chips have already been designed.

With India’s semiconductor market currently valued at $50 billion and projected to cross $100 billion by the end of the decade, he reiterated the goal of achieving greater self-reliance in chip production.

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