India is making a decisive shift from device assembly to advanced semiconductor design and manufacturing, with the upcoming production of 2-nanometre (nm) chips marking a major step in technological self-reliance.
Union Minister Ashwini Vaishnaw inaugurated ARM’s new semiconductor design office in Bengaluru this week.
The facility will focus on next-generation 2nm chip technology, which represents a significant milestone in India’s semiconductor journey.
“This technology supports next-generation devices in AI, mobile computing, and high-performance systems,” an official statement noted. “Thinner chips offer more processing power in smaller spaces, improving efficiency and reducing power consumption. They are strategically important for national security, space exploration, and defence applications.”
India has now approved ten projects under the India Semiconductor Mission across six states, with cumulative investments of Rs 1.6 lakh crore. The Mission itself has an outlay of Rs 76,000 crore to strengthen the domestic semiconductor ecosystem.
In May 2025, Vaishnaw inaugurated India’s first state-of-the-art 3nm semiconductor design centres in Noida and Bengaluru.
While India had previously achieved 7nm and 5nm designs, the 3nm projects marked a new frontier, now progressing toward 2nm technology.
Experts project the global semiconductor market to reach $1 trillion by 2030. India’s domestic sector is expected to reach $100–110 billion by the same year.
Domestic startups supported under the Design Linked Incentive (DLI) Scheme are accelerating chip design, with 23 projects sanctioned and 72 companies using advanced design tools.
Student innovation is also rising, with 28 chips taped out by teams from 25 institutions.
Around 278 universities and research institutions actively design semiconductors, developing a substantial talent pool to support India’s ambitions.
Government officials say this progress strengthens the vision of Atmanirbhar Bharat. It positions India as a key player in the global semiconductor industry.
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