Modi Pitches India As Trusted Global Chipmaking Hub

NEW DELHI: Prime Minister Narendra Modi on Thursday said India was taking every necessary step to become a preferred destination for the semiconductor industry as the world searched for new and trusted manufacturing centres.

Inaugurating SEMICON India 2026 in New Delhi, Modi said India’s economy and the world’s confidence in the country were growing simultaneously.

“The world is looking for new and trusted manufacturing destinations, and India is steadily preparing itself to meet this need,” he said.

The Prime Minister announced the $13.5-billion second phase of the India Semiconductor Mission and said regulatory reforms would facilitate collaboration among international companies, startups and chip-design firms.

“The Government of India is taking every step needed for the success of your projects,” he said.

Referring to changes in the semiconductor market driven by artificial intelligence, Modi said attention was shifting from transistor size alone to overall system integration, including memory placement and heat management.

He also emphasised the need for reliable power supplies for semiconductor plants and AI data centres. India’s solar power capacity had crossed 160 GW, while the nuclear energy sector had been opened to private players and work on small modular reactors was progressing, he said.

“India is taking every step that makes us a preferred destination for the semiconductor industry,” Modi said.

Tracing the progress of SEMICON India since its launch in 2022, he said the initiative had moved from policy discussions and project planning to pilot lines and commercial production.

Chips manufactured in India had begun reaching domestic and overseas customers, while commercial production had commenced at new plants in Mohali and Surat, he said.

Acknowledging the complexity involved in building a semiconductor ecosystem, Modi said progress in chip design, equipment manufacturing and testing had been made possible through close cooperation with industry.

“You are the pillars of this success of India; you are partners,” he told industry representatives.

Modi stressed the need to develop a strong domestic supply chain by supporting fabless companies, creating intellectual property and integrating silicon photonics into artificial intelligence infrastructure.

He urged companies dealing in semiconductor equipment, chemicals, gases and materials to take advantage of opportunities arising from the 12 approved projects and the expanding demand pipeline.

“We want the entire ecosystem to grow together,” he said.

Highlighting India’s engineering talent, Modi said the government aimed to train one lakh engineering students in chip design, of whom 70,000 had already been trained.

“Such a large talent pool is nothing less than a gold mine for all of you,” he said.

He urged young researchers and industry leaders to develop advanced technologies and strengthen research and development in India.

Highlighting developments over the past fortnight, the Prime Minister referred to discussions on inclusive finance at the Global Fintech Fest, the operationalisation of a 3,000-km Dedicated Freight Corridor and quarterly GDP growth of 7.8 per cent.

He said the recent sovereign rating upgrade by a Japanese credit rating agency reflected India’s growing economic credibility.

Modi also cited the unanimous adoption of the New Delhi Declaration at the BRICS Summit hosted by India as evidence of the international community’s confidence in the country.