By AFP and Focus | 2026-03-03

NEW DELHI -- India has inaugurated its first commercial semiconductor assembly and test facility, a milestone New Delhi says will help anchor a more resilient electronics supply chain and reduce reliance on overseas chip production in a sector where China remains a dominant force.

Prime Minister Narendra Modi opened Micron Technology's Semiconductor Assembly, Test and Packaging unit in the western state of Gujarat on on February 28, calling it the "dawn of a new era" for India's technology ambitions.

"When young Indians look back in the future, they will see this decade as the turning point in our tech future," Modi told the event, which was broadcast on his YouTube channel.

The plant will convert advanced semiconductor wafers from Micron's global network into finished memory and storage products, plugging India into a manufacturing stage that companies and governments have prioritized as they seek to de-risk supply chains.

Expanding semiconductor market

India's semiconductor market has expanded from $38 billion in 2023 to an estimated $45 billion to 50 billion in 2024–25, with government targets of up to $110 billion by 2030.

New Delhi is currently developing 10 chip projects worth more than $18 billion, including two cutting-edge 3nm design facilities in the cities of Noida and Bengaluru. Modi said at least three other semiconductor projects would begin production soon.

"India, which is known for software, is now also building its identity in hardware," he said.

Meanwhile, industry executives and Indian officials have framed the Gujarat launch as an early test of whether India can translate policy incentives into a durable manufacturing ecosystem that can absorb shocks from geopolitics, transport disruptions and concentrated capacity in East Asia.

Micron and its government partners have put the combined investment at about $2.75 billion, with the first phase designed for more than 46,452 square meters of cleanroom space, according to a company statement.

With commercial production now under way, Micron marked the site's opening by delivering its first shipment of India-made memory modules to Dell Technologies for local laptop manufacturing.

Situated in Sanand, Gujarat state, the facility is a cornerstone of India’s strategy to build a scalable semiconductor hub. Micron projects the plant will test and assemble tens of millions of chips in 2026, scaling significantly to hundreds of millions by 2027.

'India delivers'

Modi used the inauguration to pitch India as a dependable destination for chip and electronics investment. "India has just one message for investors around the world: India is ready, India is reliable, India delivers," he said, according to Computer Weekly.

Modi linked the launch to deepening technological cooperation with Washington, noting India's entry into the US-led Pax Silica alliance focused on artificial intelligence, critical minerals and supply chain security — areas where China holds considerable sway. "The entire world wants to secure these supply chains which are key for humanity's future," Modi said.

Indian Electronics and Information Technology Minister Ashwini Vaishnaw said the inauguration was a step toward shifting India from chip consumption to higher-value production, describing it as a move toward a "trusted, resilient and self-reliant semiconductor ecosystem," according to the company statement.

The company and Indian partners are addressing deficiencies in workforce and infrastructure that presently constrain India's ability to scale up. Micron is pointing to partnerships with Indian universities and training programs that will build skills for advanced manufacturing roles.

The opening marked "India's entry into the global semiconductor supply chain as a manufacturer nation," the US ambassador to India, Sergio Gor, said.

"This is just the beginning," Gor added.