More companies to start memory chip production in India: Vaishnaw
What's the story
Union Minister Ashwini Vaishnaw has said that more companies are likely to invest in India for memory chip production. He also said that existing investors would ramp up their production to bridge the demand-supply gap in this segment. The statement comes as global demand for memory cards and advanced chips has outstripped supply, pushing prices higher and prompting manufacturers to boost investment and production capacities worldwide.
Production costs
Rising costs of electronics
The rising prices of memory chips have increased the production costs of several electronic products, including smartphones and laptops. Vaishnaw said that a lot more investment is coming into memory manufacturing units as there's a huge shortage of certain components needed in AI data centers. He specifically mentioned high-bandwidth memory chips, which are critical for these centers.
Investment surge
Data center investments in India
Vaishnaw also noted that data center investments in India are likely to cross $200 billion soon, creating a need for billions of gigabytes of storage capacity. He acknowledged a global supply-demand imbalance but said it is being addressed by setting up more units. The minister gave the example of Micron's high-bandwidth memory chips, which started commercial production earlier this year, as an effort toward resolving this mismatch.
Investment prospects
Future investments in memory chip segment
When asked about future investments in the memory chip segment, Vaishnaw said both new and existing players are likely to invest. He also revealed that the India Semicon Mission 1.0 could see around 48 start-ups working on tech products. The minister emphasized that in ISM 2.0, design will be the topmost priority, followed by machines used in semiconductor manufacturing.
Mission progress
Indigenous production of complex chemicals and gases
Vaishnaw said that after decades of effort, India has managed to attract chipmakers under Prime Minister Narendra Modi's regime. He said the ISM 1.0 program lays the foundation for a strong domestic semiconductor industry. The minister also stressed on indigenous production of complex chemicals and gases used in chip manufacturing as part of ISM 2.0's focus on chip design and equipment manufacturing in India.