India will fabricate its first chip in two years.

The mentioned statement was made by the Commerce Minister of the specified South Asian country Piyush Goyal during a conversation with media representatives in New York.

It is worth noting that India is currently striving to develop the homegrown semiconductor industry. The current state of affairs in the space of geopolitical relations favors the corresponding aspirations. Amid rising tensions between the United States and China, many Western companies view India as a kind of alternative manufacturing hub. Fearing sanctions from Washington for close cooperation with Beijing, the mentioned firms are seeking to intensify collaboration with New Delhi. In the context of the current configuration of the geopolitical reality, these companies aim to diversify their activities outside of China, but at the same time maintain a presence in Asia, which is a huge market and a space of significant prospects. As part of this strategic thinking, India has already been noticed, for example, by Nvidia, AMD, and Micron Technology.

Piyush Goyal said that Indian business giant Tata and other local companies are making efforts to develop the domestic chip manufacturing sector.

At the same time, it is unlikely that a South Asian country will be able, relying only on its own strength, to start making the most advanced microcircuits. In this case, it will most likely need the experience of such players in the relevant industry as Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung, which produce some of the newest chips.

Piyush Goyal, during a conversation with journalists, admitted that making microcircuits is a tough job. At the same time, in this context, he stated that India has the talent and skills. Piyush Goyal also talked about his trip to Silicon Valley, where he visited some US semiconductor companies. The minister paid special attention to tons of Indians working on the shop floor and management teams.

Piyush Goyal is confident that India will be able to deliver its first chip by 2026-2027.

Returning to the topic of foreign companies that have drawn attention to the South Asian country as a manufacturing center, Apple’s experience should be mentioned. Piyush Goyal stated that currently 14% of all iPhones are produced in India. According to him, the corresponding indicator is expected to increase. It is worth noting that Apple has sought to diversify its supply chain beyond China. The company also started manufacturing iPads, AirPods, and Apple Watches in India.

During a conversation with journalists in New York, Piyush Goyal said that the country of which he is an official representative does not depend on China. In a certain sense, this is an indicative statement in a geopolitical context. New Delhi aspires to the status of a self-sufficient Asian center of attraction, including economic and industrial ones.

This week Piyush Goyal held a meeting with a few Wall Street investors on Monday including executives from BlackRock, Warburg Pincus, and KKR. He stated that almost all US companies specializing in private equity are looking to build and develop data centers in India.

As we have reported earlier, Tokyo Electron Plans to Operate in India.