Promotional graphic showing PM Narendra Modi announcing his Gujarat visit on Feb 28 to unveil a US-backed semiconductor chip plant, with a background of microchips and the Maps of India logo

On February 28, Prime Minister Narendra Modi will visit Gujarat and mark a significant milestone in the semiconductor mission of India. In the trip, he is supposed to inaugurate the first semiconductor chip produced in one of the new plants in Sanand, which is an upcoming industrial hub adjacent to Ahmedabad.

The manufacture of the semiconductor plant has been established by a US-based company as part of India’s effort to increase the power of local chip fabrication and to lessen reliance on imports. The introduction of the first chip is being regarded as a historical event in the electronics and technology industries of the country.

Semiconductors are important elements utilized in smartphones, computers, vehicles, medical instruments, defence systems and telecommunications infrastructure. The recent years were characterized by global chip shortages that highlighted weaknesses in the supply chain, triggering a significant number of countries to increase their pace towards developing local manufacturing. India is among the countries that pursued this. The Sanand plant is a great move towards that direction.

According to the officials, the project is in line with the overall vision of the Centre for promoting high-tech manufacturing as a part of flagship projects to enhance self-reliance and foreign investment. The semiconductor unit would be set up, and this is likely to provide job opportunities, promote the transfer of technology and produce a workforce capable of working in the advanced and electronic manufacturing factory.

Sanand already boasts of market recognition as a manufacturing hub, especially in the vehicle industry. Having added semiconductor manufacturing, the city is set to increase its industrial presence to high-value technology manufacturing. Industry observers reckon that the plant may be a booster to the development of the ancillary industry and make Gujarat a choice investment destination.

It should be the visit of the Prime Minister, who will be in contact with the leaders of the industries, engineers and workers working on the project. The user symbolic launch of the first chip will mark increased capacities of India in semiconductor manufacturing, which are usually monopolized by a few players in the world.

There is also the issue of intensifying India-US technology relations, as the company partnered with a US-based company. With the increasing demands of chips all over the world, India’s move into the production of semiconductors is expected to substantially serve the growing electronics industry in the nation.

The February 28 incident is being considered as a major milestone in setting up a strong semiconductor ecosystem in India, which would make the country an emerging player in the global chip industry.