New Delhi [India], 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."
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