India's semiconductor push: 4 plants start chip production in 2026
What's the story
Union Minister for Electronics and IT, Ashwini Vaishnaw, has announced that four companies will begin commercial manufacturing of semiconductor chips in India by 2026. The companies are Micron, CG Power, Kaynes Technology, and Tata Electronics. This is a major step toward India's self-reliance in this critical technology sector.
Production shift
Transition to commercial operations
Vaishnaw said that the companies which started pilot production last year, namely CG Power and Kaynes Technology, will be the first to transition into commercial operations. Micron's facility has also started pilot production and will follow suit. Tata Electronics' plant in Assam is expected to start pilot production by mid-2026 and ramp up to commercial manufacturing by year-end.
International attention
Global interest in India's semiconductor ecosystem
The minister also highlighted the immense interest from semiconductor-producing countries like Taiwan, Japan, and South Korea in India's semiconductor ecosystem. This global attention underscores the strategic importance of semiconductors in modern technology. These tiny chips power everything from healthcare and transportation to communication, defense systems, and space exploration.
Project updates
India's semiconductor manufacturing projects
In June 2023, the Indian government approved its first proposal for setting up a semiconductor unit in Sanand. So far, 10 semiconductor manufacturing projects have been approved with a total investment of over ₹1.6 lakh crore across six states: Gujarat, Assam, Uttar Pradesh, Punjab, Odisha, and Andhra Pradesh. India's Design Linked Incentive (DLI) scheme supports start-ups and companies in semiconductor design and innovation. It will fund initial design phases but concepts must be validated by market demand under this model.