Conflicts hit global supply chains, India strengthening its role as reliable semiconductor supplier: Modi.

 India Strengthens Semiconductor Ecosystem Amid Global Supply Chain Challenges

PTI, March 31, 2026, Sanand: Prime Minister Narendra Modi on Tuesday said the 21st century has brought several challenges and global supply chains have been affected due to conflicts, emphasising that the government is laying a strong foundation for technology and energy security in the coming decades.

Modi inaugurated Kaynes Semicon’s outsourced semiconductor plant in Sanand, marking the commencement of production, and said India is strengthening its role as a reliable semiconductor supplier in the global market.

“In a sense, a new bridge has emerged today between Sanand and Silicon Valley,” he said.

Modi said India is actively building a robust semiconductor ecosystem and making efforts to establish a resilient supply chain for raw materials.

“India is actively building a robust semiconductor ecosystem and simultaneously making significant efforts to establish a resilient supply chain for raw materials. India’s participation in Pax Silica is a testament to this very endeavour. Working in tandem with our global partners, we aim to ensure a secure supply chain,” Modi added.

India recently joined Pax Silica, a US-led strategic coalition launched in December 2025 to secure critical technology supply chains, with a special focus on semiconductors, AI, and rare earth elements.

“To achieve self-reliance in critical minerals, India has launched the National Critical Minerals Mission,” Modi said.

This mission emphasised mining and production of critical minerals. Additionally, a scheme of Rs 1,500 crore had been launched to promote the recycling of minerals, he said.

Modi referred to the announcement of a ‘rare earth corridor’ in this year’s Budget, encompassing coastal states such as Odisha, Andhra Pradesh, Tamil Nadu, and Kerala.

“This corridor will serve as an integrated network, forging a robust value chain spanning mining, refining, and manufacturing. Our objective is to establish a national reserve of critical minerals within the country.”

Calling the inauguration of the second semiconductor plant at Sanand a “moment of pride” as an Indian company has joined the global semiconductor supply chain, the Prime Minister said India is strengthening its role as a reliable semiconductor supplier in the global market.

“In a sense, a new bridge has emerged today between Sanand and Silicon Valley; the plant in Sanand is now supplying Intelligent Power Modules to a company based in California,” he said.

Modi said that in 2021, India launched the India Semiconductor Mission under which works of Rs 1.60 lakh crore are underway across 10 states.

“India launched Semiconductor Mission 2 in the last Budget to make India self-reliant in every sector of its production,” he said.

Modi said India is encouraging industry-led research and training to prepare a future-ready skilled workforce.

“Very soon, more than 85,000 design professionals will be prepared in the country. Additionally, looking at the entire ecosystem, arrangements are being made to train professionals.”

“To encourage semiconductor design, the chips-to-startup programme is underway. More than 400 universities and start-ups have been given access to advanced design tools,” he added.

Citing industry estimates, Modi said India’s semiconductor market is at Rs 4.5 lakh crore, which is expected to cross Rs 9 lakh crore.