Ashwini Vaishnaw, Union Minister for Railways, Information and Broadcasting, Electronics and Information Technology, said India’s semiconductor manufacturing programme is progressing rapidly as the country scales chip production, AI infrastructure and data centre investments, as per ANI news report.
Speaking at the CII Annual Business Summit 2026, Vaishnaw said India now has 2 semiconductor plants already engaged in commercial production, while a 3rd facility is expected to begin operations in July 2026.
A 4th semiconductor manufacturing plant is also scheduled to start commercial production by November or December this year.
According to Vaishnaw, the current phase marks a major breakthrough for the country’s domestic chip industry.
He added that work is presently underway on 12 semiconductor factories, signalling a broader push to establish a strong local semiconductor ecosystem in India.
Vaishnaw said the government is also aggressively promoting data centres and digital infrastructure as part of India’s long-term technology strategy.
He highlighted the policy decision to exempt data centres from taxation until 2047, stating that the measure has already helped attract nearly $200 billion in investments.
According to the minister, the policy framework is aimed at strengthening India’s digital backbone and encouraging large-scale technology infrastructure deployment across the country.
On artificial intelligence, Vaishnaw said employment opportunities linked to AI are increasing by 15% to 20% annually.
He also stated that Google has agreed to manufacture AI servers in India, which is expected to further support the country’s growing semiconductor and AI ecosystem.
The minister said India has handled recent geopolitical disruptions and energy price volatility effectively through stable policymaking and economic management.
Vaishnaw urged industries and citizens to focus on reducing unnecessary imports while increasing exports in order to strengthen India’s foreign exchange reserves amid continuing global uncertainty.
Expressing confidence in the country’s economic outlook, he said India is expected to maintain annual growth between 6% and 8% while keeping inflation under control.
According to the minister, India is well-positioned to emerge stronger from the current global geopolitical turbulence.
India’s semiconductor mission is entering a major expansion phase as the government accelerates domestic chip manufacturing, AI infrastructure and data centre investments to strengthen the country’s long-term technological and industrial capabilities.
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Published on: May 12, 2026, 10:32 AM IST
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