India Ushers in New Semiconductor Era; Commercial Chip Production to Begin This Year

New Delhi: India has formally entered the semiconductor manufacturing space, with commercial chip production expected to begin later this year, the government said, highlighting lithography as the most complex and precision-intensive stage in the chipmaking process.

Union Minister for Electronics and IT Ashwini Vaishnaw said lithography, which involves printing circuits onto silicon wafers, is the most critical part of the semiconductor manufacturing chain. He noted that Dutch multinational ASML is the world’s leading supplier of lithography equipment and enables the production of nearly every chip manufactured globally.

“Our fab in Dholera will be using ASML equipment. That is why I visited ASML’s headquarters to understand their technology,” Vaishnaw said during his visit to ASML’s facility in Veldhoven, the Netherlands. He added that ASML’s presence in India would mark a significant milestone for the country’s semiconductor ambitions.

The minister emphasised that several global equipment manufacturers are now keen to establish operations in India, driven by the country’s strong chip design capabilities, large talent pool, and policy stability under Prime Minister Narendra Modi.

On the progress of semiconductor manufacturing, Vaishnaw said pilot production has already begun at multiple approved facilities, with commercial production expected to start shortly. Speaking at the World Economic Forum in Davos, he said the government is adopting a careful and systematic approach to building a resilient semiconductor ecosystem and strengthening India’s long-term capabilities in this strategic sector.

“Commercial production is set to begin shortly at one of the four semiconductor plants where pilot production has already commenced. The first plant is expected to start production in February,” the minister said.

He described the development as a major achievement after nearly six decades of effort, crediting Prime Minister Modi’s focus on developing core and foundational technologies.

Vaishnaw also noted that with a strong and mature electronics ecosystem now in place, India is well-positioned to develop indigenous mobile phone brands. According to him, Indian mobile phone brands are likely to emerge within the next 12 to 18 months.

--IANS