NEW DELHI — India took a bold step toward semiconductor self-reliance on Saturday as Prime Minister Narendra Modi inaugurated the country’s first assembly and test facility, aiming to challenge China’s dominance in the $500 billion global chip industry.
The $2.75 billion Micron Technology plant in Gujarat’s Sanand district will transform imported semiconductor wafers into finished memory and storage chips, creating 5,000 direct jobs and thousands more indirectly. Modi, addressing a cheering crowd in his home state, proclaimed it the “dawn of a new era,” predicting the decade would redefine India’s tech trajectory.
“When young Indians look back, they will see this as the turning point in our tech future,” Modi said in a speech streamed on his YouTube channel. He highlighted three more projects set to start production soon, part of a $18 billion pipeline including 3-nanometre design hubs in Noida and Bengaluru.
India’s chip market has ballooned from $38 billion in 2023 to $45-50 billion this fiscal year, with ambitions hitting $110 billion by 2030. The push counters heavy reliance on Taiwan, South Korea, and China, amid U.S.-China trade tensions and supply chain disruptions exposed by the pandemic.
Modi tied the launch to India’s inclusion in the U.S.-led Pax Silica alliance, a pact fortifying AI, critical minerals, and chip security against Beijing’s influence. “The world wants to secure these supply chains key to humanity’s future,” he emphasized.
U.S. Ambassador Eric Garcetti hailed it as “India’s entry into the global semiconductor supply chain as a manufacturing nation,” adding, “This is just the beginning.” Micron’s investment, backed by $1.3 billion in Indian incentives, underscores deepening Indo-U.S. tech ties.
Critics note challenges like skilled labor shortages and infrastructure gaps, but optimists see India emulating Taiwan’s TSMC model. “From software giant to hardware contender, India is rewriting its narrative,” said tech analyst Priya Rao of IDC India.
The facility ramps up as global demand for chips surges with AI and electric vehicles, positioning India as a diversification hub.