New Delhi: India is making a significant shift from merely assembling devices to engaging in advanced 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, which will focus on next-generation 2nm chip technology. This development represents a key advancement in India’s semiconductor journey, as a 2nm chip is being designed in the country for the first time.
The new 2nm technology will support next-generation devices in artificial intelligence (AI), mobile computing, and high-performance systems. “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,” stated an official release.
Currently, there are 10 approved projects under the India Semiconductor Mission across six states, with cumulative investments totaling Rs 1.6 lakh crore. The mission itself has an outlay of Rs 76,000 crore aimed at strengthening the semiconductor ecosystem in the country.
In May 2025, Minister Vaishnaw inaugurated two cutting-edge semiconductor design facilities in Noida and Bengaluru, marking India’s first centres focused on advanced 3-nanometre chip design. While India has previously achieved 7nm and 5nm chip designs, reaching 3nm technology represents a new frontier in innovation. The nation is now progressing towards 2nm chip technology.
The global semiconductor industry is projected to reach a valuation of $1 trillion by 2030, with India’s domestic market expected to grow to $100–110 billion within the same timeframe. Domestic startups, supported under the Design Linked Incentive (DLI) Scheme, are accelerating chip design projects. To date, at least 23 chip design projects have been sanctioned, and 72 companies are utilizing advanced design tools.
Student innovation in semiconductor design is also on the rise, with 28 chips taped out by teams from 25 institutions. Additionally, about 278 institutions and universities across India are engaged in semiconductor design and research, contributing to the growth of a substantial talent pool.
This progress reinforces India’s vision of Atmanirbhar Bharat (self-reliant India) and positions the country as a leader in the global semiconductor industry, the government stated.
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