New firms are expected to invest in India for memory chip manufacturing, while current investors plan to expand output to close the supply gap, Union minister Ashwini Vaishnaw told PTI. Strong global demand for memory cards and advanced chips has tightened supplies and raised prices recently, prompting manufacturers to boost investments and capacity worldwide. Higher memory chip prices have increased production costs for electronics such as smartphones and laptops.
Vaishnaw noted that more investment is arriving in memory manufacturing units due to rapid semiconductor industry growth and shortages of components needed for AI data centers, including high bandwidth memory chips. Data center investments in India are projected to exceed $200 billion, requiring vast storage capacity.
He described a global supply-demand imbalance now being addressed by new facilities. Micron has begun commercial production at its first plant on February 28 and a second on March 31. Both new investments and expansions by existing players are likely, he added.
The India Semicon Mission 1.0 is set to engage about 48 startups. Under ISM 2.0, chip design and semiconductor equipment manufacturing will be priorities, along with local production of chemicals and gases. Additional fabrication and packaging units are planned, building on talent development efforts.
Vaishnaw attributed rising data center interest to India’s talent pool, modern power grid with over 200,000 kilometers of new transmission lines, and nearly 50 percent renewable energy capacity. These factors draw global companies, unlike older grids in other nations.
Regarding environmental concerns, he said strict norms are followed, with innovations in power use and water cooling that cut water needs by about 70 percent. Water consumption by Indian data centers is estimated at 150.30 billion liters in 2025, rising to 358.66 billion liters by 2030.
