PM Modi Inaugurates Kaynes OSAT Facility, Highlights India's Semiconductor Ambitions
In a significant move to bolster India's technological infrastructure, Prime Minister Narendra Modi inaugurated the Kaynes Semicon outsourced semiconductor assembly and test (OSAT) facility in Sanand, near Ahmedabad, on Tuesday. During the event, the Prime Minister underscored the urgent need for India to take a leading role in global development, particularly in the face of disruptions to international supply chains caused by ongoing geopolitical conflicts.
Addressing Global Supply Chain Vulnerabilities
Prime Minister Modi pointed out that the 21st century has presented numerous challenges, with global supply chains suffering severe impacts due to conflicts. "Global supply chains have been significantly affected, whether it's semiconductors, rare earth minerals, or energy resources," he stated. "These elements are intrinsically linked to humanity's accelerated progress, and any disruption in their flow adversely affects the development of the entire human race. Therefore, it is extremely important for global development that India advances in this direction."
He emphasized that the Indian government is laying a strong foundation for technology and energy security over the coming decades, positioning the nation as a reliable semiconductor supplier in the global market.
Building a Robust Semiconductor Ecosystem
Modi highlighted India's active efforts to establish a resilient semiconductor ecosystem and secure supply chains for raw materials. "India is strengthening its role as a reliable semiconductor supplier in the global market," he said. "Our participation in Pax Silica is a testament to this very endeavor. Working in tandem with our global partners, we aim to ensure a secure supply chain."
India recently joined Pax Silica, a US-led strategic coalition launched in December 2025, which focuses on securing critical technology supply chains, with special attention to semiconductors, artificial intelligence, and rare-earth elements.
Milestone Achievement and Future Projections
The Prime Minister described the inauguration of the Kaynes OSAT facility as a major milestone, noting that an Indian company's integration into the global semiconductor supply chain marks a new chapter. "In a sense, a new bridge has emerged today between Sanand and Silicon Valley," he remarked, adding that the plant will supply intelligent power modules to a California-based company.
Citing industry estimates, Modi revealed that India's semiconductor market, currently valued at approximately Rs 4.5 lakh crore, is projected to exceed Rs 9 lakh crore by the end of the decade. "Our target is to manufacture the maximum number of chips for our needs right here in India," he asserted. "The enthusiasm of global investors towards India's resolve is a big capital for us."
India's 'Techade' and Strategic Initiatives
Describing this decade as India's 'Techade', the Prime Minister emphasized that the current period is not merely about economic competition but about shaping the future technological landscape. "India's AI ecosystem will gain great strength from the rise of our semiconductor sector," he added.
Modi recalled how, during the Covid-19 pandemic, India resolved to become a semiconductor manufacturing hub and has since accelerated policy and investment measures. Referring to the India Semiconductor Mission launched in 2021, he noted that projects worth Rs 1.60 lakh crore are underway, and the recently announced ISM 2.0 aims to deepen domestic manufacturing capabilities.
The Prime Minister also mentioned that the target of training over 85,000 design professionals will be achieved very soon. Citing the 'Chips to Startup' programme, he stated, "Technology development and a skilled workforce must go hand in hand. India is ensuring both."
Ensuring Self-Reliance in Critical Minerals
In addition to semiconductor efforts, Modi discussed measures to ensure self-reliance in securing critical minerals. He spoke of the National Critical Minerals Mission, a Rs 1,500-crore recycling scheme, and the proposed rare-earth corridor across coastal states, all aimed at strengthening India's supply chain resilience.
This comprehensive approach underscores India's commitment to becoming a global leader in technology and supply chain security, driving both national and international development forward.
