India’s Semiconductor Mission Gains Momentum as New Chip Plants Near Production 

With new fabs nearing launch and billions flowing into digital infrastructure, India is advancing toward technological self-reliance while preparing for sustained economic growth amid global uncertainties.

Union Minister Ashwini Vaishnaw on Monday said India’s semiconductor ambitions are rapidly gaining momentum, with multiple fabrication facilities moving from planning to production stages under the government’s semiconductor mission.

Speaking at the CII Annual Business Summit 2026, the Minister noted that two semiconductor plants in the country have already entered commercial production. A third fabrication facility is expected to begin commercial operations in July, while a fourth unit is likely to start production toward the end of the year, around November or December.

Highlighting the long history of India’s semiconductor aspirations, Vaishnaw said successive governments had attempted to build domestic chip manufacturing capabilities over decades. He credited the recent progress to sustained policy push and ecosystem development under Narendra Modi, which has helped translate earlier efforts into operational manufacturing facilities.

According to the Minister, work is currently underway on 12 semiconductor-related projects across the country, signalling a significant expansion of India’s electronics and chip manufacturing ecosystem. The initiative aims to reduce import dependency while strengthening local supply chains and technological self-reliance.

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Vaishnaw also emphasised the government’s strong focus on data centre expansion and digital infrastructure. He referred to the policy decision granting tax exemptions to data centres until 2047, a move he said has already attracted investment commitments worth nearly $200 billion. The policy is intended to position India as a global hub for digital services and cloud infrastructure.

On artificial intelligence, the Minister highlighted strong employment growth, stating that AI-related job opportunities are increasing at an annual rate of 15–20%. He added that Google has agreed to manufacture AI servers in India, further strengthening the country’s emerging technology ecosystem.

Addressing global economic uncertainties, Vaishnaw said India has navigated geopolitical tensions and energy price volatility through careful policymaking. He urged industries to boost exports and reduce non-essential imports to preserve foreign exchange reserves.

Expressing confidence in India’s economic trajectory, the Minister projected sustained annual growth of 6–8% with controlled inflation, adding that India is well positioned to emerge stronger amid ongoing global challenges.

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Nikita Kumari
Nikita Kumari
Nikita Kumari is a Journalist at EFY. She decodes deals, investments, and policy shifts, redefining the semiconductor and tech landscape.

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