**Executive Summary**
The Prime Minister inaugurated the CG Semi OSAT facility in Sanand, Gujarat, marking the commencement of commercial chip packaging as part of the Semicon India Program. This facility, a joint venture between India, Japan, and Thailand, signifies a strategic shift from mobile assembly to domestic semiconductor manufacturing. Key objectives include scaling production to 5 billion chips annually and establishing five semiconductor facilities by 2026 to support the vision of a developed India by 2047.
**Key Points / Main Content**
**Production and Infrastructure Milestones**
* The Sanand facility transitioned from foundation in 2024 to commercial production in 2026, with chip testing having commenced in August 2025.
* The plant will initially produce 200 million chips annually, with a long-term target of 5 billion chips per year (approximately 15 million daily).
* India has successfully operationalized three semiconductor projects within a six-month period, with a goal to have five facilities active by 2026.
**Development of Industrial Clusters**
* Sanand is being developed as a semiconductor cluster modeled after global hubs like Silicon Valley and Taiwan’s Hsinchu Science Park.
* The cluster approach aims to attract specialized companies in chemicals, testing labs, and machine servicing to create a comprehensive ecosystem.
* Major industry players, including Micron, Kaynes, and CG Semi, have already established a presence in this emerging industrial zone.
**Economic and Strategic Evolution**
* India has progressed from being a net importer of mobile phones to the world's second-largest manufacturer and exporter.
* National electronics production has increased sevenfold since 2014, while electronics exports have grown elevenfold.
* The current strategy focuses on self-reliance across the entire value chain, moving from final products to components, semiconductors, and critical high-tech materials.
**Youth Empowerment and Technical Training**
* The semiconductor revolution is creating diverse opportunities in research, design, and supply chain management for the Indian workforce.
* The project highlights the role of ITI graduates and youth from tribal regions, some of whom received advanced semiconductor training in Malaysia.
* Future technological advancements in AI, robotics, and next-gen tech are expected to be driven by "Made in India" chips.
**Impact Analysis**
**Indian Youth and ITI Graduates**
**Impact**
They gain access to high-tech employment opportunities and international training in advanced manufacturing, shifting the perception of vocational education.
**Action Required**
Focus on acquiring new skills in AI, robotics, and semiconductor design to align with the evolving industrial landscape.
**Industry Partners and Investors (CG Semi, Renesas, etc.)**
**Impact**
They benefit from a stable policy environment, fast execution, and a growing cluster ecosystem that reduces supply chain dependencies.
**Action Required**
Scale production capacities to meet the 5-billion-chip annual target and invest in the local ancillary supply chain.
**National and State Governments**
**Impact**
The successful rollout of the Semicon India Program strengthens the national economy and moves the country closer to the "Viksit Bharat" (Developed India) 2047 goal.
**Action Required**
Continue the "Reform Express" to further improve the ease of doing business and support the development of high-tech infrastructure.
Key Entities Referenced
Semicon India Program: The primary national initiative aimed at establishing a robust semiconductor and display ecosystem to position India as a global electronics manufacturing hub.
CG Semi OSAT facility: A major joint-venture semiconductor assembly and testing plant in Sanand, marking the start of commercial chip packaging production in the region.
Sanand, Gujarat: The central location for an emerging semiconductor industrial cluster hosting major production facilities and supporting infrastructure.
Make in India: A flagship national initiative driving the strategic roadmap to localize the entire electronics value chain, including components and semiconductors.
Prime Minister's Office
English rendering of PM’s address during
inauguration of the CG Semi OSAT facility in
Sanand, Gujarat
प्रव तथ: 04 JUL 2026 9:01PM by PIB Delhi
How are you all, doing well? Gujarat’s popular Chief Minister Bhupendra Bhai Patel, my colleague in the
Union Cabinet Ashwini Vaishnaw, the energetic Deputy Chief Minister Harsh Sanghvi, ministers of the
Gujarat government, MPs and MLAs, CG Power Chairman Vellayan Subbaiah ji, Renesas Electronics
President Malini ji, CG Semi Chairman Girish ji, other industry leaders present here, ladies and
gentlemen!
Today’s program is proof that whatever India resolves to do, India achieves. Five years ago, India pledged
to make the nation a semiconductor hub. We moved forward with the mantra of Design in India, Make in
India. And today, commercial production of chip packaging has begun at the country’s third
semiconductor plant.
Friends,
In 2024, I had the opportunity to lay the foundation stone of this plant. By August 2025, chip testing work
had begun here, and today, this plant has been inaugurated. The journey from foundation to production is
undoubtedly the result of the hard work of many colleagues, and the leadership of people like Subbaiah ji.
Before coming on stage, I had the chance to interact with many associated with this project. It felt as
though a mini India resides in this campus - people of every language, attire, and cuisine. During my
exhibition visit, I also spoke with many young boys and girls. And one thing I must proudly mention is
their confidence level. The conviction with which they spoke, their faith in technology - I was truly
impressed.
Friends,
This CG Semi plant is also a symbol of the joint efforts of our industry partners from India, Japan, and
Thailand. It is not just a business venture, but a model of technology, trust, and partnership that will
accelerate India’s semiconductor journey. In just over two years, you have built this facility from scratch
to scale. Today, we are beginning its commercial production. I am told that 200 million chips will be
produced here annually. Not 20 lakh, but 20 crore. And I am told you will not stop here. You have set a
target of 5 billion chips annually - more than 15 million chips every single day. I am confident you will
achieve this soon. This is further proof that the Semicon India Program is gaining momentum - step by
step, brick by brick, and now chip by chip. I extend my heartfelt congratulations to the entire CG Semi
team, the state government, and the nation.
Friends,
I feel a special joy today. You may wonder why. The reason is that twenty years ago - perhaps even earlier
- I had prepared plans to set up a semiconductor plant in Gujarat. Near Gandhinagar and Prantij, we had
earmarked 350–400 acres of land. We even held talks with some companies. At that time, the Governmentof India was making big statements, and some companies came forward for discussions. But somehow, the
government then seemed shackled, and the matter did not move forward. Today, when I see this
happening, I feel the deepest happiness within me. It is the fulfillment of a dream I had 20–22 years ago.
Back then, no one even discussed these subjects in the country. When I spoke about them, the media
mocked me. It did not happen then, but today, as it is happening, I feel immense satisfaction. Just a few
weeks ago, there was news that surprised me - and I was surprised the media did not give it the attention it
deserved. The C295 aircraft, made in Vadodara, was built in India and took flight. There was a time when
even the arrival of a bicycle factory was celebrated with sweets. Today, India is building airplanes.
Friends,
All of you here are knowledgeable, and I see many young colleagues present. If we look at the industrial
history of the world, one thing is clear: no global industrial power was built by a single factory. The
foundation of industrial power lies in clusters. America’s Silicon Valley, Taiwan’s Hsinchu Science Park,
Japan’s Silicon Island, Tsukuba Science City - all demonstrate the importance of clusters. Today, Sanand
too is moving in that direction.
Friends,
Within just a few months, Micron, Kaynes, and CG Semi have started production here. A semiconductor
cluster is being born in India. Today, chip packaging is happening here. Tomorrow, specialized companies
will come, chemicals will be produced, new testing labs will be built, industries servicing machines will
emerge, design centers will open, and startups will be born. This is the strength of clusters. One industry
gives birth to hundreds. Hundreds of industries create millions of jobs. And millions of jobs transform the
economy of an entire region. And this is not happening only in Sanand - semiconductor clusters are
emerging in many states across India.
Friends,
Today, the rise of the semiconductor sector in India has everyone excited. It is being discussed across the
country and the world. Many people see it in isolation, but that is not the case. The expansion of
semiconductors in India is not sudden - it is the next step in the electronics revolution that has unfolded
here over the past decade.
Friends,
We began with mobile phone manufacturing. There was a time when India imported most of its
smartphones, even more than its own domestic needs. Today, mobile phone production in India has
increased 33 times compared to earlier. Before 2014, India was importing phones. After you sent me from
Gujarat to Delhi, India began exporting them. Today, India is the world’s second-largest mobile
manufacturer and the second-largest mobile exporter.
Friends,
In recent years, we have strengthened the entire electronics manufacturing ecosystem. India’s total
electronics production has increased nearly sevenfold compared to 2014. Electronics exports have grown
nearly elevenfold.
Friends,
Our effort is not limited to self-reliance in final products. We are also moving towards self-reliance in
components. That is why India’s next step is clear. We will not only make mobiles, not only electronics,
but also the chips that power the entire electronics world. This is our strategy - first products, then
components, and now semiconductors. The entire electronics value chain will be in India. This is the
roadmap for a developed India. This is the next phase of Make in India.Friends,
The next step in the semiconductor ecosystem is self-reliance in critical minerals and high-tech materials.
Just now, Subbaiah ji spoke in Gujarati and shared a proverb: Missing the mark is forgivable, but aiming
low is not. That is my nature too - I do not set small targets, I do not think small. If I build a statue, I make
it the largest in the world. As Subbaiah ji said, work speaks louder than words. The progress we see today,
the achievements we celebrate, must be matched by strengthening the supply chain. That too is our goal.
Today, India is making broad efforts in this direction. Our aim is to develop the entire ecosystem in India -
from chip design to fabrication to packaging. India will not only make chips, but India’s youth will drive
the next technological revolution - in AI, robotics, and next-gen tech - powered by Made in India chips. I
have unwavering faith in the youth of India, in their talent and their strength. My complete trust lies in the
power of my nation’s young people.
Friends,
On this occasion, I want to say something directly to the youth of our nation. Whenever a new industrial
revolution comes to the world, the greatest opportunities are created for young people. When the IT
revolution came, millions of Indian youth got the chance to show their talent. Then came the era of
smartphones and electronics manufacturing, which also created millions of new opportunities. Now this
era of the semiconductor revolution and AI revolution is bringing countless opportunities. From research
and design to startup innovation and supply chain management, opportunities are everywhere.
Friends,
What is needed are new skills and new ideas. What matters now is whether you have a new idea, whether
you have the passion to learn and to do something new. Today I met daughters from Jharkhand, Balaghat,
Madhya Pradesh, Kerala, Chhattisgarh - and our conversation began with “Jai Johar.” Because I have
lived in that region, I know it well. The speed with which these daughters have learned, and the way they
were conducting things there, fills me with pride in the youth power of my country.
Friends,
In the coming times, AI will open up an entire world of new skills and new expertise before you. That is
why India’s youth must not miss this opportunity. And I say to the young people - the idea is yours, the
support is mine.
Friends,
This facility, this project, is also proof of how India’s youth are connecting with new possibilities. The
sisters and daughters working here - as I said, from Jharkhand, Chhattisgarh, Madhya Pradesh, the entire
tribal belt - showed me the factory. With great enthusiasm, they explained every detail. Ordinary families,
ordinary schools, ITI education. In our country, when someone joins ITI, parents often don’t even tell
others, they feel embarrassed. But times have changed - this is the era of ITI graduates. Their education
may be from ITI, but their dreams are extraordinary. Many of these daughters’ families had never even
made a passport, never seen one. Some had never even been to Delhi or Mumbai, let alone abroad. Yet
these same daughters went to Malaysia for training, learned the world’s most advanced semiconductor
technology, and today they are part of the Made in India chip manufacturing process. I remember when
Subbaiah ji once showed me a video in Delhi - a three-minute film about these daughters’ lives. How they
lived in forests, studied sitting on cots, and then stood at the airport for check-in, clearing immigration to
fly to Malaysia. I immediately told him that whenever I came to Gujarat, I would invite these daughters to
the Governor’s House and talk to them. I could not do it then, but today I got that opportunity. Thank you,
Subbaiah ji. I congratulate all these daughters and their families.
Friends,Today’s occasion is also proof of how impatient we are to make India developed. At the beginning of this
year, I had said that by 2026, four semiconductor facilities would start. And today my minister has said -
not four, but five. And I am happy that in just six months, production has already begun in three projects.
This shows that today’s India not only sets big goals but also achieves them on time. This is the
confidence India gives to the whole world, to every investor. Our policies are stable, our decisions are
clear, and our execution is fast. I assure the management of CG Semi and other investors - the path of
reforms that India has chosen, the Reform Express we have boarded, will only accelerate further. Today’s
India is fully committed to ease of doing business. With this commitment, 1.4 billion Indians will make
India developed by 2047. And today’s 18–20-year-olds - I work hard so that when you are 40–45, when
your children are growing up, you will raise them in a developed India. That is why I dedicate my life - for
the future of your children.
Friends,
We have set out on the path of development. We are reaching new heights of progress. And in this journey,
the semiconductor sector is becoming a great strength, creating new confidence. I extend my best wishes
to all of you. Move forward with high goals. If we miss the mark, we will see, but we must march ahead.
My heartfelt congratulations and thanks to all of you.
DISCLAIMER -This is the approximate translation of Prime Minister's Speech. Original Speech was delivered in Hindi.
*****
MJPS/SS/VJ/ST
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