New Delhi Semiconductor Units Begin Commercial Chip Production Across All Ten Approved Facilities
New Delhi’s semiconductor landscape has reached a significant milestone as all ten government-approved units have begun commercial chip production. This development marks India’s first major step in building a self-reliant electronics and high-tech manufacturing ecosystem. Officials from the Ministry of Electronics and Information Technology confirmed that infrastructure upgrades are nearing completion, with additional units under approval, signalling a broader push to strengthen domestic supply chains, support emerging technologies, and boost high-value industrial growth.
S Krishnan, Secretary at MeitY, emphasised that production across all units is now fully operational. “All the 10 units that have been set up will manufacture commercial chips. Already the production of commercial chips is started,” he stated during the A(I)NDIA Conclave 2025 in New Delhi. The announcement underscores India’s ambition to reduce reliance on imported semiconductors and compete in a market traditionally dominated by East Asian manufacturers.Experts note that domestic chip production is poised to support India’s rapidly growing technology sectors, including artificial intelligence, electric vehicles, and Internet of Things (IoT) applications. By localising production, the country aims to enhance supply chain resilience, foster innovation, and attract skilled talent to emerging industrial hubs. “These semiconductor clusters could evolve into high-tech economic corridors, driving inclusive urban development,” said a senior urban planner.
The first phase of India’s Semiconductor Mission is nearing full commitment, with modernisation efforts at key facilities, such as HCL, almost complete. Approvals for an additional two to three units are currently in the pipeline, after which the government will shift focus to scaling production and boosting research and development. The phased approach ensures both capacity growth and technological advancement while maintaining alignment with sustainability and energy efficiency targets.Alongside chip production, MeitY is advancing initiatives to integrate artificial intelligence into domestic industry. Hundreds of preparatory events have already been held nationwide ahead of the India AI Impact Summit 2026, reflecting the government’s efforts to combine technology adoption with industrial growth. Officials suggest that aligning AI and semiconductor development could accelerate digital transformation across sectors, from smart mobility to energy management.Urban development analysts highlight the potential socio-economic impact of these units, noting that surrounding industrial clusters can generate jobs, attract ancillary businesses, and promote sustainable infrastructure. Efforts to embed green energy, eco-friendly manufacturing practices, and gender-inclusive workforces are increasingly prioritised, ensuring that industrial growth contributes to equitable and resilient cities.
India’s commercial semiconductor production represents more than a technological milestone; it reflects a strategic push toward self-reliant, sustainable, and inclusive industrialisation. As production scales, these initiatives could redefine urban economic clusters, supporting a zero-carbon, high-tech industrial future while positioning India as a critical player in the global electronics supply chain.
