India rising as global semiconductor hub: Modi

Prime Minister Narendra Modi on Tuesday said global conflicts have disrupted supply chains worldwide, underlining India’s push to emerge as a reliable semiconductor supplier while strengthening long-term technology and energy security.

Speaking at the inauguration of Kaynes Semicon’s outsourced semiconductor plant in Sanand, Modi said the facility marks a significant step in India’s journey to integrate with global chip supply networks. He described the development as a “new bridge” between Sanand and Silicon Valley, highlighting that the plant has begun supplying Intelligent Power Modules to a California-based firm.

The Prime Minister noted that the 21st century has brought unprecedented disruptions, from pandemics to geopolitical conflicts, impacting supply chains of chips, rare earth minerals, and energy. He stressed that ensuring stable supply chains is essential not just for economic growth but for global development.

Modi said India is actively building a robust semiconductor ecosystem while working to secure raw material supply chains. He pointed to India’s participation in Pax Silica, a US-led initiative focused on securing critical technology supply chains, as a step toward strengthening international cooperation.

Highlighting domestic initiatives, Modi said the government has launched the National Critical Minerals Mission to boost mining and production of essential resources. He also referred to a Rs 1,500 crore scheme aimed at promoting mineral recycling and the proposed rare earth corridor across coastal states including Odisha, Andhra Pradesh, Tamil Nadu, and Kerala. The corridor is expected to create an integrated value chain spanning mining, refining, and manufacturing.

Calling the current decade India’s “Techade,” Modi said the country is not just adapting to technological change but aiming to lead it. He added that India’s rapid progress in digital services and fintech reflects growing public trust in technology, while expanding semiconductor capabilities will further boost the country’s AI ecosystem.

The Prime Minister also highlighted policy efforts to scale up the sector, including the India Semiconductor Mission launched in 2021. He said projects worth Rs 1.6 lakh crore are currently underway across ten states, with a second phase announced to enhance self-reliance in chip production.

On the talent front, Modi said India is investing in skill development to create a future-ready workforce. Over 85,000 design professionals are expected to be trained, while more than 400 universities and startups have been given access to advanced chip design tools under the chips-to-startup programme.

Citing industry estimates, he said India’s semiconductor market, currently valued at around Rs 4.5 lakh crore, is projected to double to over Rs 9 lakh crore in the coming years. He added that strong investor interest reflects confidence in India’s manufacturing ambitions.

Modi emphasised that India’s approach combines manufacturing growth, ease of doing business, and logistics improvements, positioning the country as a dependable player in global supply chains.