Underlining that “the biggest victim” of conflicts is the global supply chain “whether it is chips, rare earth minerals or energy”, Prime Minister Narendra Modi said Tuesday that “our effort is to prepare a full-stack Indian semiconductor ecosystem” for “big partnerships in domestic and global supply chains”.

He made these remarks at the inauguration of the Outsourced Semiconductor Assembly and Test (OSAT) facility of the Kaynes Technology semiconductor plant in Sanand in Gujarat.

Noting that he was back in Sanand within a month for the inauguration of a second semiconductor facility — he inaugurated the Micron plant on February 28 — Modi said, “This is not merely a coincidence, it is proof of the speed at which India’s semiconductor ecosystem is developing.”

He said it is a proud moment that an Indian company has entered the chip manufacturing space – the plant has been built at an estimated cost of Rs 3,300 crore in Sanand GIDC. “In the coming days, many Indian companies, through global collaboration, will give the world a resilient semiconductor supply chain,” he said.

“Today’s milestone embodies the mantra of ‘Make in India, Make for the World.’ With the facility supplying Intelligent Power Modules to a California-based company and a large share of its output already booked for export, a new bridge has effectively been built between Sanand and Silicon Valley. The modules made in Sanand will reach American companies and from there will power the entire world,” he said.

The Intelligent Power Modules, he said, will strengthen the electric vehicle ecosystem and heavy industry, both in India and globally. “This is not just about one product, it is about India becoming a reliable semiconductor supplier in the global market,” he said.

India’s current global semiconductor market stands at Rs 4.5 lakh crore, with a target of reaching Rs 9 lakh crore by 2030. Referring to the launch of the India-Semiconductor Mission in 2021 during the Covid pandemic, Modi said, “This mission is not just an industrial policy, it is a declaration of India’s self-confidence”.

He spoke about India’s efforts to secure a resilient raw material supply chain, including the country’s membership in the US-led Pax Silica and the launch of the National Critical Minerals Mission.

The PM’s remarks about global supply chains being affected come amid the war in West Asia that has led to an energy crisis by disrupting shipping through the Strait of Hormuz. LNG, LPG and crude supplies have been hit, sending shock waves through the global economy.

Highlighting the Rs 1,500-crore scheme for mineral recycling and the announcement of a Rare Earth Corridor connecting coastal states like Odisha, Andhra Pradesh, Tamil Nadu and Kerala, he said, “It would have been better had this work started 30-40 years ago, but India is now working on this in mission mode.”

Describing this decade as India’s ‘Techade,’ Modi said, “India’s AI ecosystem will get great strength from the rise of our semiconductor sector. India is making unprecedented investments and reforms in every critical technology , this is a tremendous opportunity for investors across the world.”

“India is leading in AI adoption globally. The space sector has been opened to private players, and work is progressing in mission mode on nuclear and quantum computing. The Kaynes plant will further accelerate India’s journey toward becoming the ‘factory of the world’,” he said.