Chip production milestones: Two semiconductor plants are operational, with a third starting in July and a fourth by December, plus 12 more in progress.
Data centre growth: Tax exemption until 2047 has spurred close to $200 billion in investments, including Google’s $15 billion AI hub in Visakhapatnam.
AI manufacturing push: Google and HP will build AI servers in India, aiming to meet surging demand and boost the domestic tech ecosystem.
Semiconductor mission reaches critical momentum
Vaishnaw confirmed that two semiconductor plants are already producing commercially, with a third scheduled for July and a fourth by November or December. Twelve more factories are under construction, marking one of India’s most ambitious industrial technology drives. The minister framed this as the culmination of decades of effort by successive governments to achieve chip self-reliance, a goal pursued since 1962.
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 two factories which are already doing commercial production. The third factory should start commercial production in July. The fourth should start somewhere in November or December.”
Major investments in data infrastructure
Vaishnaw said the government’s policy of exempting data centres from taxation until 2047 has encouraged close to $200 billion in investments. This includes Google’s $15 billion AI hub in Visakhapatnam, planned with a capacity of up to 5GW and developed with partners AdaniConneX and Nxtra by Airtel. The facility will be complemented by subsea cable projects linking India to Australia, the Middle East, Europe, South Africa and the United States.
AI manufacturing gains global partners
Google has agreed to manufacture AI servers in India, joining HP in producing high-performance computing systems for AI workloads. These servers will support applications such as large language model training and real-time inference, aligning with India’s growing AI job market, which is expanding by 15–20% annually. The move reflects global tech firms’ interest in India as both a production base and a rapidly growing AI market.
Future scenarios for India’s tech ambitions
If semiconductor and AI manufacturing scale as planned, India could significantly reduce import dependence, boost exports, and emerge as a key node in global tech supply chains within five years. Alternatively, delays in factory readiness or global market shifts could slow momentum, risking underutilised infrastructure and missed opportunities. Historical parallels with India’s late start in electronics manufacturing underscore the importance of sustained policy support and investor confidence
