Vaishnaw Expects More Companies to Produce Memory Chips in India
Why in News?
- Rising global demand for memory chips and advanced semiconductors, particularly for Artificial Intelligence (AI) applications and data centres, has created a supply-demand imbalance.
- This has led to a sharp increase in memory chip prices, raising production costs for smartphones, laptops, servers, and other electronic devices.
- Union Minister Ashwini Vaishnaw stated that India is likely to attract fresh investments in memory chip manufacturing, while existing firms may expand production capacities.
High Bandwidth Memory (HBM)
What is HBM?
- High Bandwidth Memory (HBM) is an advanced form of Dynamic Random Access Memory (DRAM) designed to deliver:
- Extremely high data transfer speeds.
- Higher memory bandwidth.
- Lower power consumption.
Key Features
- Uses 3D stacking technology, where multiple memory chips are vertically stacked.
- Connected through Through-Silicon Vias (TSVs), enabling faster communication between memory layers.
- Occupies less physical space while improving performance and energy efficiency.
Applications
HBM is a critical component in:
- Artificial Intelligence (AI) systems.
- AI data centres.
- Graphics Processing Units (GPUs).
- Supercomputers.
- High-Performance Computing (HPC).
Significance
- Enables rapid processing of massive datasets.
- Supports training and deployment of complex AI models.
- Essential for next-generation computing infrastructure.
India’s Growing Semiconductor Opportunity
Emerging Demand Drivers
- India’s data centre investments are expected to exceed $200 billion.
- Increasing digitisation, cloud computing, AI adoption, and data storage requirements are driving semiconductor demand.
Potential Benefits for India
- Attraction of global semiconductor investments.
- Expansion of domestic manufacturing capacity.
- Creation of high-skilled employment.
- Reduction in import dependence.
- Strengthening of strategic technological capabilities.
India Semiconductor Mission (ISM) 2.0
Aim
To establish India as a reliable and competitive participant in the global semiconductor value chain while advancing:
- Aatmanirbhar Bharat
- Make in India – Make for the World
Budgetary Provision
- ₹1,000 crore allocated for FY 2026–27.
Key Focus Areas
1. Indigenous Manufacturing
- Promotion of domestic production of:
- Semiconductor equipment.
- Chemicals and gases.
- Raw materials and components.
- Objective: Reduce import dependence and supply-chain vulnerabilities.
2. Full-Stack Intellectual Property (IP) Development
- Development of end-to-end indigenous semiconductor IP.
- Strengthening technological sovereignty and competitiveness.
3. Research and Skill Development
- Establishment of industry-led research centres.
- Promotion of applied R&D and advanced manufacturing skills.
- Creation of a skilled semiconductor workforce.
4. Supply Chain Resilience
- Building secure and diversified semiconductor supply chains.
- Mitigating risks arising from geopolitical tensions and global disruptions.
Progress under ISM 1.0
Launch
- Approved in December 2021.
- Incentive outlay of ₹76,000 crore.
- Fiscal support of up to 50% of project costs.
Achievements
- As of December 2025:
- 10 semiconductor projects approved.
- Total investment: ₹1.60 lakh crore.
- Spread across 6 states.
Coverage
Projects include:
- Silicon fabrication plants (fabs).
- Compound semiconductor facilities.
- Advanced packaging units.
- Testing and assembly facilities.
Supporting Ecosystem Measures
Modified Programme for Development of Semiconductor and Display Manufacturing Ecosystem
- Financial outlay of ₹8,000 crore for 2026–27.
Objectives
- Accelerate investments in semiconductor manufacturing.
- Expand fabrication and packaging capacities.
- Promote innovation and technology development.
- Generate high-quality employment opportunities.
Significance for India
Economic Significance
- Enhances manufacturing competitiveness.
- Supports growth of electronics and digital industries.
- Attracts foreign direct investment (FDI).
Strategic Significance
- Reduces dependence on imported chips.
- Strengthens technological self-reliance.
- Improves resilience against global supply-chain disruptions.
Technological Significance
- Supports AI, cloud computing, 5G/6G, and advanced computing ecosystems.
- Positions India as an emerging semiconductor hub
