The production of chips in India is planned to begin in 2026

Apple’s partner enterprises already produce every seventh iPhone sold in the world in India; in a few years, every fourth iPhone will share this fate, but now the main task of the country’s authorities is to organize local chip production. According to Commerce Minister Piyush Goyal, the production of semiconductor components will be launched in India in 2026-2027.

Image source: The Week

In fact, these comments from an Indian official to CNBC help us understand the time frame for which the joint venture between PSMC and Tata Electronics, which will focus specifically on processing silicon wafers, expects to start operating. In addition, the latter is planning to build a chip testing and packaging facility, and CG Power and Kaynes have similar plans. In addition, Micron, with the participation of Tata, will build a testing and packaging facility for memory chips in India. Israeli contract chip maker Tower Semiconductor is set to set up a facility in India with the participation of the Adani Group. There will also be a “homegrown” contract chip manufacturer L&T Semiconductor Technologies with serious vertical integration, which would also develop chips for its clients. By the end of the decade, the Indian semiconductor industry’s annual turnover is expected to more than triple to $500 billion.

In an interview with CNBC, the Indian Minister of Commerce said that the production of the first chips in the country will begin in a couple of years, and it has everything necessary to achieve this goal – both qualified personnel and knowledge. Goyal was particularly encouraged by the presence of Indian talent on staff at many US companies during his visit to California. His compatriots literally work both in production and in leadership positions.

Apple’s plans to expand electronics manufacturing in India alone have created 150,000 new jobs in the country. In addition to smartphones of this brand, the production of iPad tablets, AirPods headphones and Apple Watches is launched here. According to the official, India’s success as a new production site for Apple is not related to problems related to China. Goyal is convinced that India has its own competitive advantages that allow it to surpass China.

During his visit to the US, the official met various institutional investors and he confirmed their desire to build and expand data centers across India. At least Google, Microsoft and Nvidia are already engaged in relevant activities in this country. Foreign investors are sometimes deterred by weak infrastructure and bureaucratic delays that slow down the implementation of large projects.