The Deep-Tech Surge: PM Modi Outlines India’s Shift to Microchips and Private Rockets

NEW DELHI — Prime Minister Narendra Modi declared on Saturday, August 1, 2026, that India is rapidly advancing on an unprecedented journey of industrial and technological self-reliance, writing new chapters across artificial intelligence, semiconductor manufacturing, deep tech, and space exploration. Addressing national stakeholders during a series of high-level infrastructure and technology inaugurations, the Prime Minister highlighted that domestic manufacturing and youthful entrepreneurship are reshaping the country's economic trajectory.

The statement follows a series of milestone achievements under the India Semiconductor Mission (ISM), including the foundation laying for ASIP Technologies’ ₹2,500 crore chip packaging facility in Visakhapatnam and commercial operations at semiconductor clusters in Sanand, Gujarat. Prime Minister Modi emphasized that India has evolved from an IT service consumer into a primary global hardware, chip design, and artificial intelligence hub.

Expanding Semiconductor Clusters and 'Make in India' Hardware

A cornerstone of the national technological surge is the rapid establishment of domestic semiconductor assembly, testing, marking, and packaging (ATMP) facilities. According to government progress reports from the Ministry of Electronics and Information Technology (MeitY), semiconductor clusters are emerging across multiple states, expanding beyond Sanand to Andhra Pradesh, Karnataka, and Maharashtra.

The Prime Minister observed that while oil regulated global power dynamics in the 20th century, microchips and artificial intelligence will serve as the core regulators of 21st-century economic strength. By manufacturing high-performance chips domestically for consumer electronics, automotive systems, defense equipment, and space systems, India is securing its supply chains against global market disruptions.

Deep Tech, Space Commercialization, and Youth Entrepreneurship

In addition to semiconductor manufacturing, the Prime Minister praised the rapid expansion of India's commercial space sector. Following legislative reforms allowing private participation in space exploration, domestic aerospace startups have successfully launched privately built rockets, positioning India as a competitive player in the international commercial satellite launch market.

Official records from the Department of Space and IN-SPACe show that over 200 space-tech startups are actively developing launch vehicles, satellite constellations, and ground station software. Simultaneously, the IndiaAI Mission is deploying over 10,000 graphics processing units (GPUs) to provide scalable compute access to researchers and early-stage AI founders.

Economic Transformation and Global Market Impact

For Indian citizens, consumers, and technology workers, the rapid expansion of chip plants, AI research centers, and space ventures generates high-skilled technical employment while boosting domestic manufacturing capacity. Industrial disclosures indicate that ongoing semiconductor packaging projects alone will generate thousands of direct engineering roles and tens of thousands of indirect technical jobs.

For global investors and technology corporations, India's combined advantage of demographic dividend, democratic governance, and large-scale digital infrastructure presents an attractive ecosystem for long-term capital allocation.

Official Sources Section

Statements, project parameters, and national statistics cited in this article originate from official government releases and administrative portals:

• Prime Minister's Office (PMO): Transcripts of Prime Minister Narendra Modi's national addresses and event inaugurations.

• Ministry of Electronics and Information Technology (MeitY): Official policy updates on the India Semiconductor Mission and IndiaAI framework.

• Press Information Bureau (PIB): Official releases on semiconductor facility inaugurations and technology sector milestones.

Official Statements and Quotes

"India is rapidly moving forward on a new journey of semiconductor manufacturing and is writing new chapters in AI, deep tech, space technology and innovation. Youth are driving India's digital economy, building startups, and leading the Make in India and Atmanirbhar Bharat initiatives."

— Prime Minister Narendra Modi

"According to officials from the Ministry of Electronics and Information Technology, India's transition from software services to end-to-end hardware design and chip fabrication marks a structural shift toward global technology leadership."

Why It Matters

The national push into AI, semiconductors, and space technology cements India's transition from a technology consumer to a primary creator of advanced hardware and software systems. For local industries, domestic chip supply shields manufacturing sectors from international geopolitical bottlenecks. For global supply chains, India provides a reliable, democratic alternative for high-tech manufacturing, testing, and AI system design.

Key Facts at a Glance

• Multi-Sector Surge: India is expanding simultaneously in semiconductor assembly, generative AI, and commercial spaceflight.

• Chip Ecosystem: Multiple semiconductor clusters operational and under construction in Gujarat, Andhra Pradesh, and other states.

• Startup Position: India stands as the world's 3rd largest startup ecosystem with over 200,000 recognized entities.

• Space Commercialization: Private space entrepreneurs successfully launching domestic rockets and satellite payloads.

Frequently Asked Questions

What did PM Modi state regarding India's role in AI, semiconductors, and space?

Prime Minister Narendra Modi stated that India is rapidly advancing on a new tech journey, writing new chapters in AI, deep tech, semiconductor manufacturing, and space innovation driven by youth entrepreneurship.

How is the India Semiconductor Mission progressing?

Under the India Semiconductor Mission, multiple semiconductor plants and OSAT/ATMP packaging facilities have commenced operations or construction in Sanand (Gujarat) and Visakhapatnam (Andhra Pradesh), establishing a complete domestic chip ecosystem.

What is driving India's commercial space sector growth?

Policy deregulation under the IN-SPACe framework has enabled private startups to design, build, and launch commercial rockets and satellite constellations, transitioning India into a commercial space hub.

Source: Prime Minister's Office, Ministry of Electronics and Information Technology, Press Information Bureau.