Gandhinagar (Gujarat) [India], July 5 : Gujarat Chief Minister Bhupendra Patel on Saturday said the current decade will be India's defining era for semiconductor and electronics sectors as Prime Minister Narendra Modi inaugurated CG Semi's Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand.
Expressing confidence that the plant will make India a key partner in the global semiconductor supply chain and further strengthen the country's semiconductor ecosystem, the CM said the CG Semi plant will generate more than 5,000 direct and indirect employment opportunities.
The Chief Minister said that during "Prime Minister Narendra Modi's 12 years of good governance, India has transformed from being one of the Fragile Five economies into the world's fastest-growing economy." He added that this journey of economic development has opened new avenues in manufacturing, soft power and the technology landscape.
Chief Minister Bhupendra Patel added that the "Prime Minister's vision has enhanced India's global standing in the semiconductor and electronics sectors. At a time when the global supply chain was disrupted during the COVID pandemic, the Prime Minister resolved to make India a global semiconductor hub, and today that vision has been realised through his commitment to delivering on every promise."
He further stated that under the Prime Minister's vision, a world-class semiconductor ecosystem is being developed at Dholera, India's first Smart Industrial City. He also noted that Gujarat became the first state in the country to announce a Semiconductor Policy in 2022 with the objective of making the state future-ready in the semiconductor sector.
The Chief Minister said that self-reliance is the cornerstone of achieving the Prime Minister's vision of a Viksit Bharat by 2047. Under PM Modi's leadership, Atmanirbharta has now become a solution to global challenges. He also called upon everyone to contribute towards building a Viksit Bharat through a Viksit Gujarat.
The Prime Minister described the launch as a testament to the nation's unwavering commitment to achieving its goals. He emphasised that the country transforms its strong resolve into reality without hesitation.
PM Modi firmly stated, "Today's event is proof that whatever India resolves to achieve, it accomplishes with determination."
Recalling the strategic vision launched half a decade ago, the Prime Minister referred to the objective of transforming the country into a global hub for advanced technology. Driven by the broader strategy of local design and local manufacturing, he celebrated the formal commencement of commercial chip packaging at this third major facility.
PM Modi said, "We have successfully moved forward with the foundational mantra of Design in India and Make in India."
Reflecting on the project's rapid development timeline, the Prime Minister recalled laying its foundation stone in 2024 and appreciated the swift commencement of chip testing by August 2025. He credited this remarkable journey from planning to full-scale production to the relentless dedication and focus of numerous project partners.
"This extraordinary journey from foundation stone laying to production is undoubtedly the result of the hard work of many partners," said the PM.
Before addressing the gathering, the Prime Minister recalled his interactions with the dedicated workforce at the facility. After interacting directly with several young professionals during his visit to the exhibition, he praised their remarkable energy, optimism and positive outlook.
PM Modi remarked, "Every young colleague I interacted with today is filled with confidence."
Describing the newly established facility as a symbol of international collaboration, the Prime Minister appreciated the joint efforts of local, Japanese and Thai industry partners. He said the venture is far more than a business enterprise and highlighted it as a strong model of technological trust and cross border partnership.
Prime Minister Modi emphasised, "This integrated partnership is going to give India's semiconductor journey an entirely new momentum."
Referring to renowned technology hubs such as Silicon Valley, Hsinchu Science Park and Tsukuba Science City, he highlighted the critical importance of developing a holistic and integrated ecosystem.
PM Modi observed, "Today, Sanand is moving firmly in that very direction to establish such powerful clusters."
Looking ahead to the arrival of specialised chemical manufacturers, testing laboratories, design centres and dynamic startups, he explained how local industries multiply economic growth and employment opportunities.
PM Modi emphasised, "This is the real strength of a cluster, where one industry gives birth to ten more and ultimately transforms the entire regional economy."
Elaborating on the Government's strategic roadmap, the Prime Minister clarified that the ultimate objective extends far beyond self-reliance in finished consumer products to include their foundational components. Reaffirming the commitment to manufacture chips that power global technology, he outlined a complete end-to-end domestic value chain.
He stated, "First products, then components, and now semiconductors. This is the decisive next phase of Make in India."
Outlining the future stages of the ecosystem, the Prime Minister stressed the critical need for self-reliance in high-technology materials and critical minerals to secure the complete supply chain.
PM Modi emphasised, "Our youth will actively power the next generation technology revolution using Made in India chips."
Addressing the youth, the Prime Minister cited historical examples showing how major industrial transformations always create unprecedented employment opportunities. Drawing parallels with the opportunities generated by the IT and smartphone manufacturing boom, he predicted that the current technological wave would create similarly vast opportunities.
The Prime Minister stated, "This era of the semiconductor and AI revolution is bringing countless opportunities from research and design to supply chain management."
Referring to the vast possibilities opened up by artificial intelligence, he urged the younger generation to seize these emerging opportunities with enthusiasm.
PM Modi firmly stated, "India's youth should not miss this incredible opportunity to learn something new and put it into practice."
Highlighting the inclusive social impact of this technological progress, the Prime Minister shared inspiring stories of young women from tribal communities working at the new facility. Deeply impressed by their journey from ITI education and modest backgrounds to advanced technical training in Malaysia, he appreciated their vital role in operating some of the world's most advanced manufacturing processes despite never having travelled outside their hometowns before.
PM Modi noted, "These daughters with truly extraordinary dreams are today an integral part of the Made in India chip manufacturing process."
Union Minister for Electronics and Information Technology Ashwini Vaishnaw also highlighted the technical journey and infrastructure development under India's semiconductor mission, stating that PM Modi's vision has transformed the semiconductor industry into a reality in India.
Owing to the remarkable efficiency of Chief Minister Bhupendra Patel and his team, commercial production has commenced at Sanand's third semiconductor plant in a record 27 months after the groundbreaking ceremony in March 2024. The chips manufactured at this plant will not only be used in cars and scooters in India but will also be exported to countries such as Japan, the United States and Europe, showcasing India's technological capabilities globally. India's electronics manufacturing sector has now grown into a ₹13 lakh crore industry, providing employment to 25 lakh people.
Chairman of CG Power Vellayan Subbiah, in his welcome address, expressed happiness over this historic achievement and said that under the visionary leadership of Prime Minister Narendra Modi, India is emerging as a strong global force in the semiconductor sector.
Sanand's new plant will play a pivotal role in strengthening India's position in the global semiconductor market. The key project details include a total investment of Rs 7,600 crore (approved by the Union Cabinet in February 2024), production capacity that, once both plants reach full capacity, they will manufacture 5 billion chips annually and 1.5 crore chips per day.
The project is a joint venture between CG Semi, a subsidiary of CG Power and Industrial Solutions Limited, Japan's Renesas Electronics and Thailand's Stars Microelectronics.
The plant currently employs more than 300 people and is expected to generate over 5,000 direct and indirect employment opportunities over the next five years.
The plant will manufacture legacy chips such as QFN and QFP, as well as advanced FC-BGA and FC-CSP chips, catering to the needs of the automotive, electronics, industrial equipment, 5G communications and power applications sectors.