PM flags supply chain shocks, pitches India as chip hub
Sanand facility signals boost to domestic semi-conductor ecosystem
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Prime Minister Narendra Modi on Tuesday said global conflicts have disrupted supply chains worldwide, underscoring India’s push to emerge as a reliable semiconductor supplier and strengthen long-term technology and energy secu-rity.
Speaking in Sanand after inaugurating Kaynes Semicon’s outsourced semicon-ductor assembly and test (OSAT) facility, Modi said the country is building a robust semiconductor ecosystem alongside resilient raw material supply chains. The plant marks India’s growing integration into global chip manufac-turing networks. He described the development as “a new bridge between Sanand and Silicon Valley,” noting that the facility is already supplying Intelli-gent Power Modules to a California-based firm.
Modi said lessons from the COVID-19 pandemic prompted India to accelerate efforts to become a semiconductor hub. He highlighted India’s participation in Pax Silica, a US-led coalition launched in December 2025 to secure supply chains for semiconductors, AI and rare earths, as a key step towards ensuring trusted global partnerships.
To boost self-reliance in critical inputs, the government has launched the Na-tional Critical Minerals Mission, focusing on mining, processing and supply security. A Rs 1,500 crore scheme has also been rolled out to promote recy-cling of critical minerals.
In addition, the Union Budget announced a ‘rare earth corridor’ spanning coastal states including Odisha, Andhra Pradesh, Tamil Nadu and Kerala. The corridor aims to create an integrated value chain covering mining, refining and manufacturing, along with building a national reserve of critical minerals.
Calling the current decade India’s “Techade,” Modi said the country is posi-tioning itself not just as a participant but as a leader in shaping the future technological landscape. He pointed to strong adoption of artificial intelligence and the success of Digital India and fintech as evidence of growing trust in technology.
India’s semiconductor push, he said, will further strengthen its AI ecosystem. “Our policies are laying a strong foundation for technology and energy security for decades to come,” he added.
