India Highlights Semiconductor Cluster Growth at Sanand Facility
India has formally inaugurated a new semiconductor packaging and testing facility in Sanand, Gujarat, marking another step in the country’s effort to expand domestic chip manufacturing capacity. Speaking at the event on 4 July 2026, the Prime Minister said the project reflected India’s broader strategy to develop a complete semiconductor ecosystem covering design, manufacturing, testing and packaging. Details of the address were published by the Press Information Bureau. The Prime Minister said the facility represented collaboration between Indian and international industry partners and demonstrated the speed at which the country’s semiconductor ambitions were progressing. He noted that testing operations at the plant began in August 2025, with commercial production now underway less than two years after the foundation stone was laid. Sanand emerging as a semiconductor manufacturing cluster During the address, the Prime Minister highlighted the importance of industrial clusters in building globally competitive manufacturing sectors. He cited examples from the United States, Taiwan and Japan, arguing that semiconductor ecosystems depend on networks of suppliers, testing facilities, design centres and supporting industries rather than individual factories operating in isolation. According to the speech, Sanand is beginning to develop into a semiconductor cluster, with multiple facilities already commencing production in the region. The Prime Minister said the area could eventually support chemical suppliers, specialised testing laboratories, equipment servicing businesses and start-ups linked to semiconductor manufacturing. The facility is expected to produce around 200 million chips annually in its current phase, with longer-term expansion plans targeting significantly higher output. The Prime Minister said this growth reflected the wider momentum of the national semiconductor programme and the government’s effort to strengthen domestic manufacturing capabilities. Semiconductors linked to wider electronics strategy The Prime Minister connected the development of semiconductor manufacturing to India’s broader electronics production strategy. He said the country had first focused on expanding mobile phone manufacturing before moving into electronics components and now semiconductors. This approach, he said, aimed to establish a full electronics value chain within India. The speech also referenced growth in electronics exports and manufacturing over the past decade, positioning semiconductors as the next stage of industrial development. The government has increasingly linked this agenda to wider economic and technology objectives, including artificial intelligence, robotics and advanced manufacturing. Recent policy initiatives have also focused on AI and semiconductor growth as part of the country’s digital and industrial strategy. The Prime Minister said India’s long-term objective was to create a domestic ecosystem spanning chip design, fabrication and packaging. He also pointed to the importance of securing critical minerals and high-technology materials required for semiconductor supply chains. Focus on workforce development and technical skills A significant portion of the address focused on workforce participation and technical training. The Prime Minister described meeting young workers from several Indian states, including those from tribal regions, who had received specialised semiconductor training overseas before joining operations at the Sanand facility. He said these experiences illustrated how emerging technology sectors were creating new employment opportunities for young people with technical qualifications, including graduates from industrial training institutes. The government has recently expanded efforts aimed at developing chip design talent and strengthening advanced manufacturing skills. The Prime Minister also linked semiconductor growth to the rise of artificial intelligence and other advanced digital technologies. He encouraged young people to build new skills in research, design, innovation and supply chain management as global demand for semiconductor expertise increases. Manufacturing expansion central to industrial policy The address framed semiconductor manufacturing as part of India’s wider industrial policy agenda, which seeks to increase domestic production capacity and reduce dependence on imports in strategic technology sectors. The Prime Minister argued that electronics manufacturing growth over the past decade had created the conditions necessary for semiconductor expansion. Government initiatives have increasingly focused on integrating advanced manufacturing with digital infrastructure and supply chain resilience. Programmes supporting electronics self-reliance have also emphasised the role of automation, smart manufacturing and local component production. The Prime Minister said India’s policy environment aimed to provide stability, faster implementation and improved ease of doing business for investors in high-technology industries. He added that semiconductor manufacturing would play an important role in the country’s long-term economic development plans and ambitions to become a developed economy by 2047.
Source: OpenGov Asia