India is poised to achieve a major milestone in its semiconductor journey as Union Electronics and IT Minister Ashwini Vaishnaw announced that commercial production of semiconductor chips will begin in 2026. Speaking to ANI during his visit to ASML’s headquarters in Veldhoven, Netherlands, the minister confirmed that the timeline set under the India Semiconductor Mission in January 2022 remains on track. Four semiconductor plants are expected to commence operations this year, while pilot production has already started in three facilities in 2025.
The minister highlighted the rapid development of India’s semiconductor ecosystem, with global equipment manufacturers establishing operations in the country and a robust materials manufacturing base taking shape. He noted that talent development is progressing faster than anticipated, with 65,000 professionals already trained against a 10-year target of 85,000. Total investments in the sector have reached nearly USD 90 billion, with commitments likely to climb to USD 150 billion ahead of the AI Impact Summit in New Delhi from February 16-20.
Vaishnaw emphasized the critical role of lithography in chip manufacturing, describing it as the most complex and precise process. He revealed that India’s upcoming fabrication facility in Dholera, Gujarat, will utilize advanced lithography equipment from ASML, the world’s leading provider of such tools. The minister expressed optimism that ASML’s potential entry into India, along with other global players, will be accelerated by the country’s strong design capabilities, vast talent pool, and consistent policy support under Prime Minister Narendra Modi.
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The India Semiconductor Mission, approved in December 2021 with an outlay of Rs 76,000 crore, continues to drive progress in fabrication, display manufacturing, and chip design. Vaishnaw pointed out strong global endorsement for India’s efforts, particularly in semiconductors and artificial intelligence, following discussions at the World Economic Forum in Davos. Industry leaders expressed confidence in India’s trajectory and eagerness to contribute further.
On the AI front, the minister underscored India’s strengths across the entire AI stack, predicting leadership in the application layer through sovereign models capable of addressing most domestic challenges. With infrastructure investments nearing USD 70 billion and growing rapidly, India is positioning itself as a key player in high-tech manufacturing and innovation on the global stage.
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