India's New Chip Plants Start Commercial Production

• India's 10 new semi plants start commercial chip output
• ISM 1.0 nears full commitment; ISM 2.0 in planning
• MeitY Secy: Production already underway in units

India's​‍​‌‍​‍‌​‍​‌‍​‍‌ new semiconductor fabrication and assembly units have started commercial chip production. It is a major milestone for the country to move towards technological self-sufficiency and a strong domestic electronics ecosystem. MeitY Secretary S Krishnan informed that all ten units approved in the first phase of the India Semiconductor Mission (ISM) are now engaged in the production of commercial-grade chips.

"Commercial chip production has already been initiated," he mentioned at the A(I)NDIA Conclave-2025 held in New Delhi. He also said that the programme is almost fully committed as ten projects have been actualized and 2-3 more projects are soon to be approved.

The news follows up on rapid developments that were private trial productions in a few plants that happened earlier this week. The first phase (ISM 1.0) is about to finish the upgrade of the main infrastructure, including the last stages of the HCL modernisation, thus preparing the ground for ISM 2.0.

Also Read: Apple Eyes iPhone Chip Assembly in India to Boost Local Manufacturing

The plan includes several fabrication plants, assembly, testing, marking, and packaging (ATMP) facilities, and an outsourced semiconductor assembly and test (OSAT) unit, all of which will be supported by an attractive government incentive package.

Krishnan emphasized the continual progress: "As you are aware 10 projects have been implemented on the ground, and we will get the approvals for another two and three projects and then ISM 1.0 will be fully committed." Such a move considerably brings about a change in India's trade relations. It cuts down on import dependency, boosts supply chain resilience, and places India as a future global player in the semiconductor field.

The effect can be felt in the prevailing scenario of high demand for the electronics, automotive, and AI sectors. This milestone is consistent with the broader objectives of economic growth and innovation. Preparations for the India AI Impact Summit 2026, where AI's societal and productivity impacts will be discussed, are included as well.