Four semiconductor plants in India to begin commercial production in 2026
New Delhi, January 2
Union Minister for Electronics and IT Ashwini Vaishnaw announced on Friday that four companies will commence commercial manufacturing of semiconductor chips in 2026, marking a significant milestone in India's push for self-reliance in critical technology.
Micron, CG Power, Kaynes Technology, and Tata Electronics are expected to start commercial production this year, with strong interest from Taiwan, Japan, and South Korea in India's semiconductor ecosystem.
Speaking to reporters, Vaishnaw explained that companies that began pilot production last year, including CG Power and Kaynes Technology, will transition to commercial operations first.
Micron's facility has also recently started pilot production and will follow suit.
Tata's plant in Assam is scheduled to begin pilot production by mid-2026 and scale up to commercial manufacturing by year-end.
The minister emphasized that interest from major semiconductor-producing nations remains "immense and huge."
Semiconductors are at the heart of modern technology. They power essential systems in healthcare, transport, communication, defence, and space.
As the world moves towards greater digitalisation and automation, semiconductors have become integral to economic security and strategic independence.
In June 2023, the government approved the first proposal for establishing a semiconductor unit in Sanand. As of the date, the government has approved 10 semiconductor manufacturing projects with a cumulative investment of more than Rs 1.60 lakh crore in six states: Gujarat, Assam, Uttar Pradesh, Punjab, Odisha, and Andhra Pradesh.
Further, on the redesigned Design Linked Incentive (DLI 2.0) scheme, Vaishnaw addressed concerns about deployment of public funds, stating that taxpayer money must ensure long-term growth.
He noted that India's design capabilities have strengthened significantly, with companies now working on advanced two-nanometre chip designs compared to five-to-seven nanometre designs previously.
Under the restructured DLI, the government will fully support initial design phases, but concepts must be validated by market demand.
"It is not like you take the money on the name of design and shut shop and go away," he said, adding that funding beyond initial support will be proportional to venture capital investment, a model followed globally.
The minister clarified that industry stakeholders are "very happy" and "on board" with this market-validation approach.
Asked about a new production-linked incentive scheme for mobile phone manufacturing, Minister Vaishnaw said details would be shared "at the appropriate time."
— ANI
Reader Comments
As someone in the tech industry, this is a game-changer. Moving from 5-7nm to 2nm design capabilities in such a short time shows incredible progress. The market-validation model for DLI 2.0 sounds prudent with taxpayer money.
Good step, but the timeline feels a bit optimistic. We've heard announcements before. Hope the ground reality matches the press conferences. The minister's point about not letting companies "shut shop and go away" is crucial – accountability is key.
Investment of ₹1.6 lakh crore across six states! This will create so many high-skilled jobs and boost local economies. Especially happy to see Odisha and Assam in the list. Our engineers won't have to go abroad for such work anymore.
The global interest from Taiwan, Japan, and South Korea is the real validation. When the existing giants want to be part of your ecosystem, you're doing something right. This strengthens India's position in the global tech supply chain immensely.
Beyond phones and gadgets, this is vital for defence and space. Strategic independence in semiconductors means security. Hope the focus on quality matches the focus on speed. Jai Hind!
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