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Back to 2026-07-11🔷 Technology

Why is India suddenly making its own computer chips in Gujarat?

11 Jul7 min read· 📷 pierre matile

Prime Prime Minister Narendra Modi officially inaugurated India’s first major semiconductor assembly and testing facility in Sanand, Gujarat on Friday. This milestone advances India's ambition to become a global hub for microchip manufacturing.

₹76,000 crore

Semiconductor Subsidy Pool

Prior Domestic Silicon Subsidies: ₹0₹76,000 crore

⏳ Time Machine

How today’s news fits into the bigger picture

  1. 10 years ago

    In 2016, India's chip ecosystem was limited exclusively to software design, with virtually no industrial policy for physical fabrication.

  2. Last year

    The government approved a series of high-value fiscal incentives to attract global semiconductor packaging giants to Gujarat.

  3. Last month

    Construction and testing at the Sanand facility entered their final phases as engineers calibrated ultra-pure cleanrooms.

  4. Yesterday

    India's electronics sector relied entirely on overseas packaging facilities in East Asia to process and test raw silicon wafers.

  5. Today

    Prime Minister Modi inaugurates India's first major semiconductor packaging plant, launching a new era of domestic hardware.

  6. What happens next?

    By 2028, India aims to host its first operational silicon fabrication unit, completing the entire end-to-end chip supply chain.

On Friday, India took a massive leap toward technological sovereignty as Prime Minister Narendra Modi inaugurated a state-of-the-art semiconductor production facility in Sanand, Gujarat. This plant marks the transition of India's chip dreams from blueprint to physical manufacturing. Traditionally, India has designed chips but relied entirely on East Asian hubs for actual fabrication and packaging. This new facility will handle advanced semiconductor assembly, testing, and packaging, creating thousands of high-tech jobs. Backed by multi-billion dollar government incentives, the plant aims to reduce India’s heavy reliance on imported microchips, which power everything from smartphones to electric vehicles. It establishes Gujarat as the primary anchor of India's emerging electronics ecosystem, attracting global supply chain partners to set up operations locally.

💭 If you're wondering…

Making (fabrication) is printing circuits on raw silicon; packaging (OSAT) is placing that silicon into a protective case with electrical connectors so it can be used.

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