India’s semiconductor manufacturing mission is moving forward rapidly, with Union Minister Ashwini Vaishnaw announcing that 2 semiconductor plants are already in commercial production, while 2 more facilities are expected to begin operations later this year.
Speaking at the CII Annual Business Summit 2026 on Monday, the Minister for Railways, Information & Broadcasting, Electronics and Information Technology said the country is making significant progress in building a domestic semiconductor ecosystem.
“The most heartening thing is the semiconductor manufacturing. In 1962, we started this journey. We tried so many times, so many prime ministers tried. Prime Minister Nehru tried, Prime Minister Indira Gandhi tried, Prime Minister Rajiv Gandhi tried, Prime Minister Dr Manmohan Singh tried. They all tried. Finally, the success came to Prime Minister Narendra Modi, and today we have 2 factories which are already doing commercial production. The 3rd factory should start commercial production in July. The 4th should start somewhere in November or December,” Vaishnaw said.
The Minister added that work is currently underway on 12 semiconductor factories across the country, marking a major step toward strengthening India’s chip manufacturing capabilities.
Vaishnaw also highlighted the government’s focus on expanding data centres and digital infrastructure. He said the decision to exempt data centres from taxation till 2047 has already encouraged investments worth nearly USD 200 billion.
“We are very focused on data centres. Till 2047, we are not putting any tax on data centres. That decision is very important for our country,” the Minister stated.
Speaking about artificial intelligence, Vaishnaw said AI-related job opportunities are increasing by 15-20% every year. He also revealed that Google has agreed to manufacture AI servers in India, further boosting the country’s technology sector.
Addressing global economic uncertainty, the Minister said India has managed geopolitical conflicts and energy price volatility effectively through policy measures. He also urged industries and citizens to focus more on exports and reduce unnecessary imports to protect foreign exchange reserves.
Vaishnaw expressed confidence that India’s economy will continue growing at 6-8% annually while maintaining controlled inflation.
“India will emerge as a winner from the current geopolitical turbulence,” Vaishnaw stated.
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