India’s Chip Revolution: 10 Projects, Rising Design Innovation & Road To 2 Nm Technology
By R Anil Kumar
Bengaluru. Prime Minister Narendra Modi in his Independence Day speech on August 15, 2025 announced that by the end of this year, Made in India, Made by the people of India chips will come to market.
PM Modi said that the thought process for semiconductors in the country started 5-6 decades ago, but it got stuck in files, even as several countries have mastered it and are dominating the world. The PM’s initiative has kickstarted the movement.
On September 16, Union IT Minister Ashwini Vaishnaw inaugurated ARM’s new semiconductor design office in Bengaluru, which will focus on next-generation 2 nanometre chip technology, marking a key step in India’s semiconductor journey.
These semiconductors power modern electronics, acting as the “brain” of devices from smartphones to satellites.
WHY 2 NM CHIPS MATTER
Semiconductors are the essential building blocks of modern electronics, acting as the hidden brains that make devices work. Semiconductor materials are used in the creation of tiny electronic chips that control how modern devices function. The chips can store, process & transfer information, helping devices perform tasks.
Each chip contains millions or even billions of micro-scale switches called transistors on a fingernail-sized surface, which control electrical signals much like brain cells pass messages. Thinner chips mean more processing capacity in less space hence lighter products. Smaller transistors enable greater efficiency and reduced power consumption.
They hold strategic importance for national security, space exploration, and defence applications. A 2 nm chip is being produced in India for the first time, we are advancing from 7, 5, 3 to now 2 nm. This technology will support next-generation devices in AI, mobile computing, and high-performance systems.
INDIA’S SEMICONDUCTOR JOURNEY
The total approved projects under the India Semiconductor Mission now stand at 10 across six states with cumulative investments of Rs 1.6 lakh crore.
India Semiconductor Mission has an outlay of Rs 76,000 crore to strengthen the ecosystem.
In May 2025, Vaishnaw inaugurated two state-of-the-art semiconductor design facilities in Noida and Bengaluru. These are India’s first centres focused on advanced 3-nanometer chip design. The Minister had then highlighted that while India had earlier achieved 7 nm and 5 nm designs, reaching 3 nm marks a new frontier in innovation.
INDIA IS NOW GOING ON TO 2 NM CHIP TECHNOLOGY
Electronics manufacturing in India has expanded six-fold in the last eleven years, creating a surge in semiconductor demand. India’s Growing Ecosystem is proved by the fact that Domestic startups supported under the Design Linked Incentive (DLI) Scheme are accelerating chip design.
A total of 23 chip design projects have been sanctioned, and 72 companies now use advanced design tools.
Student innovation is rising with 28 chips taped out by teams from 25 institutions. 278 institutions and universities are engaged in semiconductor design and research, building a large talent pool.
DIVERSIFYING GLOBAL MANUFACTURING
The global semiconductor industry is projected to reach USD 1 trillion by 2030. India’s domestic market is expected to touch USD 100–110 billion by 2030. Taiwan, South Korea, Japan, China and the United States dominate the global industry.
Taiwan produces over 60 per cent of the world’s semiconductors and nearly 90 per cent of the most advanced chips.
With supply chains concentrated in a few geographies, India is emerging as a trusted and reliable partner in diversifying global manufacturing.
India was earlier more into chip designing and packaging, but after chip scarcity in Covid 19 times, India decided to go for manufacturing. Within four years, we are on the way to building a strong manufacturing ecosystem.
VISION AHEAD
India is transitioning from assembly of devices to advanced design and chip manufacturing. The focus is on designing and building chips in India for the world. The upcoming 2 nm milestone represents a decisive step in technological self-reliance.
This progress strengthens India’s vision of Atmanirbhar Bharat and positions the nation as a leader in the global semiconductor industry.
