Micron Technology’s $2.75-billion semiconductor facility in Sanand, Gujarat, is expected to begin commercial production by the end of February, IT and electronics minister Ashwini Vaishnaw said. Speaking to ET on the sidelines of the World Economic Forum in Davos, Vaishnaw said that pilot production is already underway at four semiconductor plants, with one now ready to shift to full commercial operations in the third week of February.
“I can share some good news. The four plants that started pilot production in recent months...one of which is going to start commercial production in the third week of February, I just met its CEO and he's very happy with the work that has happened in India. This is in Sanand, the Micron plant,” he said. Vaishnaw further acknowledged the complexity of semiconductor manufacturing, calling it among the hardest industrial challenges.
India making 'most complex' chips
He added that the country's approach has been to focus on problem-solving, “we are very cognisant of the difficulty involved in semiconductor manufacturing. That's why we are keeping our heads down and solving every problem as it comes. The industry is very satisfied with our problem-solving approach,” Vaishnaw said.
According to the minister, global semiconductor firms are increasingly viewing India as a destination not only for design but also for advanced manufacturing. He said that industry leaders at a Davos roundtable highlighted that the “most complex chips” are now being developed in India, including two-nanometre nodes, and as the manufacturing capability is increasing, companies may also manufacture those chips in the country.
“Yesterday, at a roundtable, practically every semiconductor industry leader they are now designing end-to-end products in India, and the most complex chips, including two-nanometre nodes, are being designed in India end to end. Now that manufacturing capability is coming up, they want to manufacture those chips in India,” Vaishnaw said.
He also pointed to a defined roadmap for technology progression in Indian chipmaking. “We have set a very clear path, from 28-nanometer to 7-nanometer, to 3-nanometer, to 2-nanometer node. That path is clearly laid out. After six decades of persistence, this is finally giving results,” he said.
'Rare earth availability very large'
Vaishnaw linked India’s semiconductor ambitions to the strength of its strategic partnerships, especially when it comes to securing critical minerals such as rare earths. He said the key challenge is not availability but processing and extraction capabilities.
“This is a very important topic. Rare earth availability is very large, there is no shortage. What is important is to be able to process them, extracting the elements from the minerals available in nature. That's where we need collaboration with multiple countries, so that we are able to create that ecosystem which can process the minerals,” he said, adding that many sectors depend on rare earths.
While answering whether India can secure the rare earths required for semiconductor manufacturing and the wider electronics ecosystem, Vaishnaw described mineral supply as inherently multilateral, requiring multiple countries to play complementary roles. “The mineral value chain will always remain a multilateral value chain. It will have multiple players as part of the value chain. Some things will come from one country, others from another country. What is important is to build alliances,” he told ET.
He noted that India has built semiconductor development partnerships with several regions and countries. “That's why we have alliances with the US, with Germany, with Japan. We now have alliances with South Korea and with the entire EU for semiconductor development,” Vaishnaw said.
India amid global headwinds
In the midst of geopolitical uncertainty, Vaishnaw said India’s focus is on building dependable partnerships rooted in trust. “What's important is to create relationships based on trust. That's what Prime Minister Narendra Modiji has done over the last 11 years. The relationships that we have developed are relationships of trust, where we co-create, co-develop, and add value to each other. These are the relationships that will sustain in this turbulence,” he said.
Asked about US President Donald Trump’s speech at the WEF, Vaishnaw said the global environment is entering a turbulent phase, making economic and technological resilience crucial. “The entire world is bracing for a very turbulent period, and we are a very, very responsible country. It's very important to have resilience built into our economy, into our society, into our country,” he said, listing resilience across technology, defence, research and development, and trade as key focus areas.
Vaishnaw also shared what he believes are the key discussions shaping this year’s Davos agenda. “There are two major themes out here. One is, as AI models become commoditised, which they have, how the value will come out of AI? The second is, in this entire geopolitical and geo-economic turbulence, how will countries respond?” he said.
In his message to the business community attending Davos, Vaishnaw said investors are increasingly viewing India as a stable and trusted partner in global supply chains. “The entire world is looking at India as a trusted value chain partner, as a country that is growing consistently, as a country that is having inclusive growth, as a democracy that is led by a leadership that is focused on making sure every section of society grows with the growth of the country,” he said. He also added that India’s pace of technology adoption and adaptability are among the factors driving investor confidence.