India's Chip-Making Milestone: 10 Plants Begin Commercial Production Amid AI Push

India has hit a major milestone with its new semiconductor plants beginning commercial chip production. The government is now finalizing the first phase of its semiconductor mission and looking ahead to the next. Alongside chips, there's a big push for AI, with a major global summit planned for 2026. The goal is to use this tech momentum to help achieve developed nation status by 2047.

Key Points: India Begins Commercial Chip Production at 10 New Semiconductor Plants

  • First 10 semiconductor units begin commercial chip production, marking a key milestone
  • Government nears completion of Phase 1 (ISM 1.0) with infrastructure upgrades underway
  • Plans for India AI Impact Summit 2026 gain momentum with over 400 pre-events held
  • Officials acknowledge AI's dual impact on job creation and potential displacement
3 min read

India's new semiconductor plants begins commercial chip production; government eyes next phase: MEITY Secy

India's 10 new semiconductor units start commercial chip production, marking a key step in its electronics ecosystem as the government eyes the next phase and a major AI summit.

"All the 10 units that have been set up will manufacture commercial chips. Already the production of commercial chips is started. - S Krishnan, MEITY Secretary"

New Delhi, December 18

India's newly established semiconductor manufacturing units have begun producing commercial chips, marking a major milestone in the country's efforts to build a domestic electronics and manufacturing ecosystem, S Krishnan, Secretary, Ministry of Electronics and Information Technology, said today.

"All the 10 units that have been set up will manufacture commercial chips. Already the production of commercial chips is started," Krishnan told media on the sidelines of the A(I)NDIA Conclave-2025 held in the national capital.

Krishnan said India's semiconductor programme was moving steadily towards full commitment under its first phase.

"As you know 10 projects are grounded, and another 2 and 3 will get approved, and then ISM 1.0 will be fully committed," he said.

He added that the government was nearing completion of infrastructure upgrades. "We are at the final stages of HCL modernisation as well, so with that, ISM 1.0 will be done, and we will be working on ISM 2.0, and the work is on."

Alongside chip manufacturing, the government is seeking to build momentum around artificial intelligence adoption through extensive stakeholder engagement. "See, I think we are doing a number of Pre-events to create a momentum for extensive participation for the range of agencies and also from industries and other stakeholders and expectations what the AI Summit holds," Krishnan said.

He said the decision to frame the upcoming global gathering as an India AI Impact Summit 2026 was intentional.

"This is a kind of mobilisation that we are trying to achieve. It's intended as AI Impact Summit, then that is a deliberate choice the idea is to emphases the kind of impact that AI can have on economies and societies across the world," he said, adding that the difference it can make for economic development and the positive dimension on how AI can significantly accelerate the India's growth path as well

The main objective is to achieve the target of developed nation by 2047

Krishnan said interest from stakeholders had exceeded expectations. "India AI Impact Summit 2026 response is extremely good," he said. "People are enthusiastically coming forward to participate. The participation has wide range. We planned to do earlier 100 Pre-events then 200, and now over 400 events were organised before the actual Summit."

He acknowledged concerns around the impact of artificial intelligence on employment. "AI can actually enhance productivity in number of sectors. As a government there are concerned on both sides. AI may lead to job losses but it will also create new set of jobs," he said.

Krishnan said innovation remained central to India's technology push but needed to be anchored in responsibility.

"Innovation is the primary object and the final push we are looking at. There should be the spirit of responsibility," he said. "In this summit, everybody is coming together to make it happen."

- ANI

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Reader Comments

P
Priya S
A great step forward, but I hope the benefits reach the common engineer and technician, not just big corporations. We need strong policies to ensure skill development at the grassroots level so that our youth are ready for these new-age jobs.
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Vikram M
Finally! We've been talking about this for decades. Seeing commercial production start is a real milestone. This will have a huge ripple effect on electronics manufacturing, from mobile phones to EVs. Hope the quality matches global standards. 🤞
S
Sarah B
As someone working in the tech industry here, this is very encouraging. The integration of chip manufacturing with AI strategy is smart. However, the concern about job displacement due to AI is real. The government must have a concrete reskilling plan ready.
R
Rohit P
Bharat is on the move! From software services to now hardware manufacturing, we are covering the full spectrum. The 2047 developed nation goal seems more achievable with such foundational projects. Kudos to all the scientists and engineers involved. 🙏
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Michael C
This is a positive development for the global supply chain diversification. India has the talent pool and market size to be a major player. The key will be sustaining this momentum into ISM 2.0 and ensuring competitive costs.
K
Kavya N

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