New Delhi: India is making a significant shift from merely assembling devices to advanced semiconductor design and chip manufacturing. The upcoming milestone of 2-nanometre (2nm) chip production marks a decisive step towards technological self-reliance, according to the government.
Union Minister Ashwini Vaishnaw recently inaugurated ARM’s new semiconductor design office in Bengaluru. This facility will focus on next-generation 2nm chip technology, representing a key advancement in India’s semiconductor journey. Notably, a 2nm chip is being designed in India for the first time. This cutting-edge technology will support next-generation devices in artificial intelligence (AI), mobile computing, and high-performance systems.
An official statement highlighted, “Thinner chips mean more processing capacity in less space, resulting in lighter products. Smaller transistors enable greater efficiency and reduced power consumption. They hold strategic importance for national security, space exploration, and defence applications.”
Currently, a total of 10 projects under the India Semiconductor Mission have been approved across six states, with cumulative investments reaching Rs 1.6 lakh crore. The India Semiconductor Mission itself has an outlay of Rs 76,000 crore aimed at strengthening the semiconductor ecosystem in the country.
Earlier in May 2025, Minister Vaishnaw inaugurated two state-of-the-art semiconductor design facilities in Noida and Bengaluru. These are India’s first centres focused on advanced 3-nanometre chip design. While India has previously achieved 7nm and 5nm chip designs, reaching 3nm marks a new frontier of innovation. The country is now progressing towards 2nm chip technology.
The global semiconductor industry is projected to reach a valuation of $1 trillion by 2030, while India’s domestic semiconductor market is expected to grow to $100–110 billion by the same year. Domestic startups supported under the Design Linked Incentive (DLI) Scheme are accelerating chip design innovation. So far, at least 23 chip design projects have been sanctioned, with 72 companies now using advanced design tools.
Student innovation is also on the rise, with 28 chips “taped out” by teams from 25 academic institutions. Overall, about 278 institutions and universities are engaged in semiconductor design and research, building a substantial talent pool.
This rapid progress reinforces India’s vision of Atmanirbhar Bharat (self-reliant India) and positions the nation as an emerging leader in the global semiconductor industry, the government said.
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