According to Ashwini Vaishnaw, Union Minister of Communications, Electronics and Information Technology and Railways, India’s first electronic chip manufacturing plant is expected to be established within a year.

The government has initially set aside $10 billion as an incentive for the setting up of a semiconductor manufacturing ecosystem in the country, which includes a wafer fabrication plant. Wafer fabrication plants are the first physical chip building blocks used in all high-tech electronic products.

Micron has started building a semiconductor assembly plant at Sanand in Gujarat in September 2023 and will invest up to $825 million in setting up the plant in two phases. The rest of the investment will come from the central and the state government of Gujarat. The component suppliers of Micron are also in an advanced stage of identifying land in collaboration with the state government.

Furthermore, the government has already set a timeline to commercially roll out the first indigenous chipsets by 2023-24 under the Digital India RISC -V program.