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Informist, Thursday, Sept. 17, 2026

 

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--PM Modi: AI-led semicon growth posing risk to climate, energy security 
--PM Modi: India preparing to deal with semicon sector's new challenges 
--PM Modi: AI posing new questions for semicon industry 
--PM Modi: Urge youngsters to invest more in R&D for semicon sector 
--PM Modi: Need fabless cos' growth in India for future semicon push 
--CONTEXT: PM Modi speaking at Semicon India 2026 event in New Delhi

  

NEW DELHI – A challenge for India's semiconductor industry is energy security, as a surge in chips used for artificial intelligence at data centres has driven up demand for power, Prime Minister Narendra Modi said Thursday. As the usage of chips due to AI deployment increases, the data centres that use thousands of processors will also increase, leading to a rise in computing requirements that will require more electricity, Modi said at the Semicon India 2026 event. 

 

Given this, it is necessary to invest more in the power sector to prevent larger disruption to energy security and the larger ecosystem, Modi said. Data centres require reliable electricity and efficient cooling systems for continuous operations. "We must ensure adequate electricity reaches data centres at the right time," Modi said. According to the Ministry of Power, demand could reach 17 gigawatt by 2031–32 (Apr-Mar).

 

India has already started working on bolstering the power sector by adopting solar energy, while also working on nuclear energy, the prime minister said. India has opened its nuclear sector to private players and is also working on small reactors, he said. "India is undertaking all steps that will make India a preferred destination for the semiconductor industry," he said. 

 

India's rapidly expanding digital economy is further strengthening demand for secure and reliable data infrastructure. Installed data-centre power capacity was around 375 megawatts in 2020, according to a government release. It has increased to 1.57 gigawatts as of August. The capacity is projected to expand further to nearly 8 gigawatts by 2030, it added. 

 

The AI boom, which has led to a huge growth for the semiconductor industry, also faces a few new challenges, Modi said. The challenge no longer is to identify what is within a chip but to also analyse what is happening around the chip, he said. "How can the memory of the chip be installed closer to the processor, how can multiple chips be empanelled to work as a singular larger chip, how to transfer huge amounts of data from one point to another without any delay, are some of the questions that the semiconductor industry must answer now," he said.

 

The prime minister urged youngsters who are involved with research and development to invest more in research and development in the semiconductor industry. India is also trying to put in place intellectual property protection norms and has significantly simplified and ensured supply chain security for the semiconductor sector to flourish, he said. 

 

The prime minister also said that more fabless companies must set up shop in India and expand their business to also start manufacturing, drawing strength from India's large labour pool. A fabless company is one that has the skill to design semiconductors but does not have a production line.  End

 

Reported by Priyasmita Dutta and Shakshi Jain

Edited by Akul Nishant Akhoury

 

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