Union Minister Ashwini Vaishnaw(file picture)| Picture Credit: SUSHIL KUMAR VERMA
Brand-new business are most likely to purchase India to make memory chips while existing financiers will scale up production to attend to the demand-supply space in the sector, Union minister Ashwini Vaishnaw stated in an interview to PTI
Strong need for memory (information storage) cards and sophisticated chips has actually tightened up international materials and supported greater costs in previous quarters, and makers have actually been improving financial investments and production capabilities to fulfill market requirements worldwide. The greater memory chip rates have, in turn, resulted in an increase in production expenses for a variety of electronic items, consisting of mobile phones and laptop computers.
“Definitely, a lot more investment is coming in the memory manufacturing units, and that is because for the first time in the way the semiconductor industry has grown at such a rapid pace, for the first time we are seeing a huge shortage of certain components which are required in the AI data centres, the high bandwidth memory chips,” Vaishnaw stated.
Information centre financial investments in India are anticipated to cross $200 billion quickly, which might require billions of gigabytes of storage capability.
The minister stated there is a worldwide phenomenon of supply-demand imbalance, which is now getting filled by setting much more systems.
“For example, there are the high bandwidth memory chips, which are manufactured by Micron. They are the first plant to start commercial production on February 28th this year. This is the second plant which started commercial manufacturing on March 31st. These are the steps which have started giving results. There is a serious supply-demand mismatch in the case of memory,” he stated.
When asked if there will be brand-new financial investments in the memory chip sector or just existing gamers have strategies to increase production, Vaishnaw stated, “Looks like both might happen”
He stated the India Semicon Mission 1.0 might get about 48 start-ups to deal with the tech items.
“In ISM 2.0, that will be the topmost priority, design will be the topmost priority. The second biggest priority will be machines, which are used in the manufacturing of semiconductors. We will seriously be looking at getting the equipment manufacturers to come to India for designing the equipment as well as manufacturing the equipment,” Vaishnaw stated.
The minister stated that after years of effort, India has actually had the ability to bring in chip makers to the nation under Prime Minister Narendra Modi’s program, as the India Semicon Mission 1.0 program sets the structure for a robust domestic semiconductor market.
He stated that work remains in advance phase for ISM 2.0, under which chip style will be an upper concern.
The minister stated the federal government will likewise take a look at the native production of intricate chemicals and gases that are utilized for making chips.
“Of course, we will be adding many more fabs (chip manufacturing plants) and ATMP (chip packaging) units. We will be carrying forward the progress we made in talent development in the first version of the semiconductor mission,” Vaishnaw stated.
Speaking about increasing financial investment in the information centre area in India, the minister stated the big swimming pool of skill schedule in India is among the standard factors that is drawing in business from around the world to establish their systems in India.
“Second, our grid is practically a new grid. More than 2 lakh kilometres of transmission lines have been constructed in the last decade. Unbelievable upgradation of transmission is happening. It is a very robust grid. Third is the large availability of renewable energy in our country. Practically 50 per cent of our power generation capacity is from renewable sources,” Vaishnaw stated.
He stated that these 3 huge aspects are bring in the hyper-scalers to come to India.
“Many countries, including some of the rich countries, have grids which are 30- 50 years vintage, which are causing imbalances when the power requirement at the data centre grows significantly higher. That is very different from the robustness of our grid, which has happened in the last few decades,” the minister stated.
When inquired about ecological issues around information centres, Vaishnaw stated, “Of course, we are following very stringent norms. Many innovations are also coming up. Innovations in terms of power requirement, water, and using certain water cooling methods, which reduce water requirement by about 70 per cent. Those kinds of innovations are happening.” There have actually been issues on growing power and water usage by information centres around the world.
According to a research study by Mordon Intelligence, water intake by information centres in India is approximated at 150.30 billion litres in 2025, and is anticipated to reach 358.66 billion litres by 2030.
Released on June 14, 2026
