Growing demand for AI and data-centre memory chips is expected to attract fresh investments and expand manufacturing capacity in India.
India is likely to witness increased investment in memory chip manufacturing as global demand for advanced memory components continues to surge, Union Minister Ashwini Vaishnaw has said.
According to The Economic Times, strong demand for memory used in AI data centres, smartphones, laptops and other electronic products has created a supply-demand imbalance worldwide. Vaishnaw highlighted shortages in high-bandwidth memory (HBM) chips, which are increasingly required for AI computing applications.
“A lot more investment is coming in the memory manufacturing units,” Vaishnaw said, attributing the trend to the rapid growth of the semiconductor industry and rising demand from AI infrastructure.
The minister said both new entrants and existing manufacturers are expected to expand capacity to address the shortage. He also pointed to growing investments in data centres, with India expected to require significant storage capacity as digital infrastructure expands.
Vaishnaw said the upcoming India Semiconductor Mission (ISM) 2.0 will place greater emphasis on chip design and semiconductor manufacturing equipment. “Chip design will be the topmost priority,” he said, while adding that the government is also exploring indigenous production of specialised chemicals and gases used in chip fabrication.
According to the minister, India’s skilled workforce, improved power infrastructure and increasing renewable energy capacity are helping attract semiconductor and data-centre investments. He also noted that efforts are going on to reduce power and water consumption in data centres through new technologies and engineering solutions.
