India to Begin First Commercial Chip Production This Year: Minister

• India is set to start commercial semiconductor chip production in 2026
• Investments have reached nearly USD 90 billion, with global players like ASML
• Strong global interest and industry backing are accelerating India’s push to become a key semiconductor and technology hub

The Union Electronics and Information Technology Minister Ashwini Vaishnaw announced recently that India will start commercial semiconductor chip production in 2026 based on the timeline which India Semiconductor Mission (ISM) established when it launched in January 2022.

He explained that the government established a five-year commercial production target at the time of the mission announcement which has now become an attainable objective.

“The first commercial production will begin in 2026, with four plants expected to commence operations this year. The pilot production has already started in three plants in 2025”, he stated.

The minister reported that India is developing its semiconductor ecosystem because major global equipment manufacturers have started operations in India while the country develops its materials manufacturing base.

He mentioned that the talent pipeline is growing at a steady pace because the first phase of the mission has achieved its milestones faster than planned. India has already trained approximately 65000 professionals through four years of a ten-year program which aims to train 85000 skilled workers.

Vaishnaw stated that India has gained strong worldwide interest and support from the semiconductor industry because of its ongoing advancements. He stated that the sector has received total investments amounting to nearly USD 90 billion while committed investments will reach USD 150 billion before the country hosts the AI Impact Summit which takes place from February 16 to 20 in New Delhi.

The minister used his Veldhoven visit to demonstrate that lithography serves as the most difficult and exacting method used in chip production.

Also Read: Infineon, NIELIT Partner to Boost India's Chip Skills

“India has started a new semiconductor industry and in the entire semiconductor industry, lithography, which basically means printing the circuit on the wafer, is the most complex and the most precise work which is required to be done. ASML, here in Netherlands, is world's leading provider of lithographic tools. They are the ones who enable practically every chip which is manufactured in the world. Our fab in Dholera will be using the ASML equipment”, Vaishnaw added.

The world leading provider of lithography equipment ASML will deliver its tools to support India’s new semiconductor fabrication plant which will be built in Dholera Gujarat. ASML’s partnership with India will provide the country with major advantages because multiple international equipment manufacturers are currently considering establishing operations there.

The minister said, “India's strength in AI is very consistent across the five layers of the AI stack. We will become the leaders in application layer. Sovereign models are getting developed which are very good and which have the capability of solving 95% of the problems that we have. The chip layer is developing very well. Infra layer - close to 70 billion dollars and growing every day”.

Global leaders at the World Economic Forum in Davos showed strong support for India especially in the fields of semiconductors and artificial intelligence.

“The semiconductor round table, where all the big leaders of the semiconductor world were present, showed confidence in India's journey so far, and they would like to contribute to our journey in every way. The AI leaders were very excited at the R&D happening in our country and the models which are getting developed and the entire diversity of our country is a major factor by which India's AI capabilities will grow to a different level”, he noted.

The India Semiconductor Mission approved by the Union Cabinet in December 2021 with a budget of Rs 76,000 crore aims to enhance India's position in the international electronics manufacturing and design and innovation sectors.