India to fabricate its first chip in two years as Nvidia, AMD and Micron pledge to expand to the country

India will fabricate its first chip in two years, Commerce Minister Piyush Goyal told CNBC during a one-on-one interview in New York.

India's push into semiconductors comes as more U.S. chipmakers set their sights on India. Nvidia, AMD, Micron are among the U.S. companies that have pledged to expand in the country.

"I'm in touch with the Micron CEO regularly, and they are making good progress," Goyal said.

Goyal added that Indian behemoth Tata and other domestic companies are working to make India's semiconductor dream a reality.

It's unlikely India will manufacture the most cutting-edge chips without the expertise of companies like Taiwan Semiconductor Manufacturing Company (TSMC) and Samsung which build some of the world's most advanced chips.

"It is a tough job, but we have the talent, we have the skills," said Goyal. The minister referenced a recent trip to Silicon Valley where he visited several U.S. semiconductor companies and "saw tons of Indians working on the shop floor [and] on management teams," recounts Goyal. 

The minister, spearheading U.S. corporation expansion efforts under Prime Minister Narendra Modi, is confident India will be able to deliver the first chip by 2026-2027.

Apple has already found success in India as it has looked to diversify its supply chain away from China. Goyal says 14% of the world's iPhones are manufactured in India, with that number "expected to grow." Apple increased assembly in the country in the last two years while boosting its retail presence to attract new iPhone buyers. And according to Goyal, Indian customers are increasingly opting for the more expensive iPhones.

Apple has also begun manufacturing other products, including iPads, AirPods and Apple Watches in the country. "They're