This would mean further expanding HSN chapters such as 8486 which covers ‘specialized machinery for making semiconductors, integrated circuits, and flat panel displays’, and 8542 which covers ‘electronic integrated circuits’ (ICs) including key digital ICs such MOSFETS, which are building blocks of modern electronics, he added.

India is set to commence commercial semiconductor chip production soon, marking a significant step towards self-reliance. The country is also making strides in AI, preparing for the 2026 India AI Impact Summit. Significant international interest and governmental initiatives highlight India’s tech sector growth.

India has taken a major leap in semiconductor self-reliance with the launch of its first homegrown 64-bit dual-core microprocessor. Named DHRUV64, this 1.0 GHz chip is designed for a wide range of strategic and commercial uses, from 5G networks to consumer electronics. The processor provides a crucial platform for domestic startups and researchers to innovate without relying on foreign technology. This launch is a key milestone under the national DIR-V Programme, paving the way for future indigenous chips like Dhanush.

Kaynes Technology India Ltd. on Tuesday announced partnership with two Japanese firms to strengthen its upcoming semiconductor manufacturing operations in India. Kaynes Semicon Pvt., a wholly owned subsidiary, signed deals with AOI Electronics Co. and Mitsui & Co.

The technology collaboration with AOI Electronics, a pioneer in semiconductor back-end processes, will provide industry-leading expertise in Advanced Packaging, Panel-Level Packaging, and Wafer-Level Redistribution Layer (RDL) technologies, according to a statement.

Memory chips constitute 10-15 per cent of server costs and the increasing cost of the chips will directly raise capex for India’s large AI/datacenter builds and slow rollout. Advanced memory prices are likely to surge by another 50 per cent from current levels through most of 2026.

India is on the cusp of achieving commercialsemiconductor chip production, with the milestone expected to be reached in the coming weeks, according to S Krishnan, Secretary, Ministry of Electronics and IT.The work is proceeding fairly rapidly, and in the coming weeks, I think we should see the commercial production. Private production has already commenced from three or four of the plants, so we should see certain inaugurations and others coming up,” Krishnan told in an exclusive interview.