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India's 3rd Semiconductor Plant to Start in July, 4th by Nov-Dec: Vaishnaw

Union Minister Ashwini Vaishnaw announced India's third semiconductor plant will start commercial production in July, with a fourth facility beginning by November or December. The minister highlighted that 12 semiconductor factories are currently in progress, marking a major step towards domestic chip ecosystem. He also noted the government's decision to exempt data centres from taxation till 2047 has encouraged nearly USD 200 billion in investments. Vaishnaw expressed confidence that India will continue to grow at 6-8 per cent annually despite global geopolitical turbulence.

Key Points: India's 3rd Semiconductor Plant to Start in July: Vaishnaw

  • Third semiconductor plant to start commercial production in July
  • Fourth facility to begin by November or December
  • 12 semiconductor factories currently in progress
  • Government exempts data centres from taxation till 2047
  • Google to manufacture AI servers in India
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India's 3rd semiconductor plant to start in July, 4th facility to be up by Nov-Dec: Vaishnaw

Union Minister Ashwini Vaishnaw announces India's 3rd semiconductor plant to start commercial production in July, 4th by Nov-Dec, boosting domestic chip ecosystem.

"Finally, the success came to Prime Minister Narendra Modi - Ashwini Vaishnaw"

New Delhi, May 11

Union Minister Ashwini Vaishnaw on Monday highlighted that India's Semiconductor Mission is accelerating, with two plants already in commercial production, a third semiconductor manufacturing factory slated to begin commercial production in July and a fourth facility set to begin this November or December.

The minister of Railways, Information & Broadcasting, Electronics and Information Technology, announced this in his address at the CII Annual Business Summit 2026 today.

"The most heartening thing is the semiconductor manufacturing. In 1962, we started this journey. We tried so many times, so many prime ministers tried. Prime Minister Nehru tried, Prime Minister Indira Gandhi tried, Prime Minister Rajiv Gandhi tried, Prime Minister Dr Manmohan Singh tried. They all tried. Finally, the success came to Prime Minister Narendra Modi, and today we have two factories which are already doing commercial production. The third factory should start commercial production in July. The fourth should start somewhere in November or December," Vaishnaw said.

The Union Minister said that work on 12 semiconductor factories is currently in progress, marking a major step towards building a strong domestic chip ecosystem.

Vaishnaw said the government is also aggressively promoting data centres and digital infrastructure. He referred to Prime Minister Narendra Modi's policy announcement exempting data centres from taxation till 2047, which he said has encouraged nearly USD 200 billion in investments.

"We are very focused on data centres. Till 2047, we are not putting any tax on data centres. That decision is very important for our country," the Minister stated.

In the field of Artificial Intelligence, Vaishnaw said job opportunities are growing by 15-20 per cent annually and noted that Google has agreed to manufacture AI servers in India, further strengthening the country's technology ecosystem.

Addressing global economic uncertainties, the Minister said India has successfully managed challenges arising from geopolitical conflicts and energy price volatility through prudent policymaking.

"We are living in very turbulent times. For no fault of ours, the entire world is getting affected by geopolitical conflicts. But India has managed the crisis effectively," he said.

Calling upon industries and citizens to contribute towards economic resilience, Vaishnaw urged greater focus on exports and reduction in avoidable imports to conserve foreign exchange reserves.

Expressing confidence in India's economic outlook, the Minister said the country will continue to grow at 6-8 per cent annually while keeping inflation under control.

"India will emerge as a winner from the current geopolitical turbulence," Vaishnaw stated.

- ANI

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Reader Comments

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Sarah B
That's impressive progress. As someone who works in tech supply chain, I know how hard it is to set up semiconductor fabs. India has been trying since 1962, as the minister said. To have 4 plants operational by end of year is remarkable. The tax exemption on data centres till 2047 is a bold move too - that will attract massive investment.
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Priyanka N
Good to see our government finally getting this right. But I'm a bit concerned - the minister mentioned all past PMs tried but only Narendra Modi succeeded. That's a bit too political for a technical achievement. Let's give credit where due but also acknowledge the groundwork laid by previous governments. Sabka saath, sabka vikas, na? 😊
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Arun Y
This is huge! For too long we've been dependent on Taiwan and China for chips. With global supply chain disruptions, India stepping up semiconductor manufacturing is not just economic sense, it's national security. Plus Google making AI servers here? JMD! 👏
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Nisha Z
I'm cautiously optimistic. The announcements sound great but execution on ground is what matters. Remember how many projects got stuck in land acquisition or environmental clearances? Hope this time the government has sorted out the real bottlenecks. Also, 6-8% growth with controlled inflation - fingers crossed! 🤞
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Tyler Y
Interesting contrast with the global situation. While the world is worried about recession and trade wars, India is talking about building 12 semiconductor plants. The data centre tax exemption is a game-changer - $200 billion investment is no joke. India might actually become a serious player in the global tech supply chain.

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