India is emerging in the global memory supply chain as Micron Technology scales production, with officials linking rising output to surging AI-driven demand and broader ambitions to localize chip manufacturing.
According to The Economic Times and AWAZ, India's electronics and IT minister Ashwini Vaishnaw said about 10% of Micron's global manufacturing will come from its newly operational facility in Gujarat as production ramps up.
"The commercial production started just a month back, and now they are ramping up very fast," Vaishnaw said, adding that demand for memory chips is being driven primarily by AI data center buildouts rather than geopolitical tensions.
The facility assembles and tests DRAM and NAND products for global markets, forming part of Micron's broader manufacturing network. The company expects the site to produce tens of millions of chips in 2026, scaling to hundreds of millions later, according to Cleanroom Technology.
The ramp-up comes alongside wider government efforts to boost domestic electronics manufacturing. Authorities have approved 75 projects under the Electronics Component Manufacturing Scheme, with total investments of about INR616.71 billion (approx. US$6.6 billion) and 65,000 jobs expected, Vaishnaw said.
AI demand boosts outlook, but ecosystem gaps remain
Vaishnaw emphasized that current supply tightness is linked to "large infra build out" in AI systems, not external conflicts, reinforcing the structural nature of demand growth.
However, India's role remains focused on assembly, testing, and selected components rather than leading-edge fabrication. While officials highlighted progress in design capabilities and workforce development, including training tens of thousands of engineers, the country is still building a full semiconductor ecosystem.
The government has pushed industry to improve quality standards and deepen capabilities in design and engineering, warning that global competitiveness will depend on meeting international benchmarks.
Article edited by Jack Wu
