Prime Minister Narendra Modi inaugurated a new semiconductor manufacturing facility at Sanand in Gujarat on 4 July 2026, marking a major milestone in India's push for self-reliance in chip production. Addressing the gathering, Modi declared that India's youth would power the artificial intelligence, robotics, and next-generation technology revolution using domestically manufactured chips.
Facility to boost India's semiconductor ecosystem
The Sanand facility, set up under the government's Production Linked Incentive (PLI) scheme for semiconductors, is expected to produce advanced chips for a wide range of applications including AI, automotive, and consumer electronics. The plant is part of a larger strategy to reduce dependence on foreign imports and position India as a global hub for semiconductor manufacturing.
According to officials, the facility will create thousands of direct and indirect jobs in the region, contributing to the local economy and skill development. The government has allocated significant funds to support the semiconductor ecosystem, including design, fabrication, packaging, and testing.
Modi's vision: Made in India chips for the world
"India's youth will power the AI, robotics and next-gen tech revolution with Made in India chips," Modi said during the inauguration. He emphasized that the facility aligns with the Atmanirbhar Bharat (Self-Reliant India) mission and will help the country achieve technological sovereignty.
The Prime Minister also highlighted the role of the semiconductor industry in enabling India's digital transformation, from smart cities to electric vehicles. He urged industry leaders to invest in research and development to stay competitive globally.
Industry reaction and future plans
Industry experts welcomed the move, noting that the Sanand facility will strengthen India's position in the global semiconductor supply chain. The plant is expected to begin commercial production within the next year, with initial focus on 28nm and 45nm nodes.
The government has announced plans to set up multiple such facilities across the country, with investments totaling over ₹76,000 crore. The Sanand plant is a joint venture between a consortium of Indian and international companies, with technology transfer agreements in place.
