PM promises an even faster pace of systemic economic reforms
Prime Minister Narendra Modi said the newly inaugurated on 4 July CG Semi Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat, is a testament to the nation’s unwavering commitment to its goals, elaborating, “Today’s event is proof that whatever India resolves to do, it firmly accomplishes.”
Tracing the strategic vision initiated half a decade ago, the Prime Minister recalled the core objective of transforming the nation into a global hub for advanced technology. Driven by the overarching strategies of domestic design and localized manufacturing, he celebrated the official commencement of commercial chip packaging at this third major facility.
“We successfully moved forward with the foundational mantra of Design in India and Make in India,” said PM Modi, assuring global investors of absolute policy stability, clear decision-making, and unmatched execution speed. He promised an even faster pace of systemic economic reforms.
Backed by supports from the central and state governments, and in collaboration between CG Power, Renesas Electronics Corporation and Stars Microelectronics, CG Semi is investing over Rs.7,600 crore over five years to develop two OSAT facilities – G1 and G2. While G1 has now commenced commercial production, the second facility, G2, is under development and will significantly scale CG Semi’s production capacity once operational.
Reflecting on the rapid developmental timeline of the project, the Prime Minister recalled laying the foundation stone in 2024 and acknowledged the prompt initiation of chip testing by August 2025. He credited this incredibly swift journey from inception to full-scale production directly to the relentless dedication and focus of numerous project associates. “This remarkable journey from foundation stone to production is definitely the result of the immense hard work of many colleagues,” noted PM Modi.
Recounting his personal interactions just moments before addressing the gathering, the Prime Minister shared his experiences speaking with the dedicated workforce stationed at the facility. Having engaged directly with numerous young professionals during his exhibition tour, he praised their palpable energy, optimism, and positive outlook. “Every young colleague I interacted with today is completely full of self-confidence.’
Positioning the newly inaugurated facility as a beacon of international collaboration, the Prime Minister lauded the joint efforts bridging domestic, Japanese, and Thai industry partners. He described the venture as far more than a simple commercial enterprise, highlighting it instead as a robust model of technological trust and cross-border partnership. “This integrated partnership is going to give entirely new momentum to India’s semiconductor journey,” underscored PM Modi.
Addressing the gathered industry experts and youth, the Prime Minister drew pivotal lessons from global industrial history to emphasize that true manufacturing power does not stem from isolated factories. Citing legendary tech hubs like Silicon Valley, Hsinchu Science Park, and Tsukuba Science City, he underscored the absolute necessity of developing comprehensive, integrated ecosystems. “Today, Sanand is firmly taking its steps in the same direction to establish such powerful clusters,” highlighted PM Modi.
Detailing the rapid emergence of a robust domestic ecosystem, the Prime Minister highlighted the concurrent production launches by major firms like Micron, Kaynes, and CG Semi in the region over just a few months. Envisioning the imminent arrival of specialized chemical producers, testing labs, design centers, and dynamic new startups, he illustrated how localized industries exponentially multiply broader economic and employment opportunities. “This is the true power of a cluster, where one industry gives birth to ten, ultimately changing the economy of the entire region.”
Addressing the immense nationwide and global excitement surrounding this sectoral boom, the Prime Minister corrected the misconception that this rapid growth is an isolated phenomenon. He explained that the current expansion is actually a carefully planned progression stemming from long-term technological policies set over the past ten years. “This is the natural next step of the electronics revolution that has arrived in India over the last decade,” PM Modi underlined.
Tracing the roots of this localized manufacturing success, the Prime Minister contrasted the past reliance on imported smartphones with the current production boom. Noting a staggering thirty-three-fold increase in output, he proudly recognized the nation’s new status as the world’s second-largest producer and exporter in the mobile sector. “We deliberately started our journey with mobile phone manufacturing to eventually achieve these incredible milestones.”
Quantifying the broader success of the domestic ecosystem over recent years, the Prime Minister shared remarkable growth statistics across the entire sector. He revealed that total production has surged nearly seven times compared to 2014 levels, alongside an impressive eleven-fold explosion in overall exports. “We have successfully and comprehensively strengthened the entire electronics manufacturing ecosystem,” affirmed the Prime Minister.
Expanding on the government’s strategic roadmap, the Prime Minister clarified that the ultimate goal extends far beyond self-reliance in final consumer products to encompass the foundational components themselves. By committing to manufacture the very chips that power global technology, he outlined a complete, end-to-end domestic value chain. “First the product, then components, and now the semiconductor; this is the definitive next phase of Make in India.”
Mapping out the future phases of the ecosystem, the Prime Minister emphasized the critical need for self-reliance in high-tech materials and critical minerals to secure the entire supply chain. Envisioning a localized network spanning from design to packaging, he expressed immense faith in the younger generation to leverage these domestic chips for advanced revolutions in AI and robotics.
Directing his message toward the younger demographic, the Prime Minister highlighted historical precedents showing how major industrial shifts consistently generate unprecedented employment prospects. Drawing parallels to the massive opportunities unlocked by the previous IT and smartphone manufacturing booms, he forecasted similar vast horizons emerging from the current technological wave. “The era of the semiconductor and AI revolution is bringing countless opportunities spanning from research and design to supply chain management,” stressed PM Modi.
Challenging the future workforce to continuously adapt, the Prime Minister stressed that modern relevance is strictly dependent on acquiring fresh expertise and cultivating innovative ideas. Pointing to the vast new paradigms unlocked by artificial intelligence, he urged the younger generation to seize these emerging prospects with immense passion. “The youth of India must absolutely not lose this incredible opportunity to learn and execute something new.” Fiinews.com
