By the end of 2025, India is expected to introduce its first domestically made semiconductor chip, marking a revolution in its economic and technical landscape.
Union IT Minister Ashwini Vaishnaw verified this milestone, which is the result of years of policy measures, infrastructure investments, and strategic collaborations targeted at turning India from a global design powerhouse into a country capable of manufacturing chips on its own.
Despite not being at the forefront of global semiconductor technology—industry giants like TSMC and Intel are making chips at 3nm and moving towards 2nm—the chips, which are based on 28nm and 90nm process nodes, are extremely important for India.
Up until now, India’s contribution to the semiconductor value chain has mostly consisted of chip design, with actual manufacture being contracted out to foreign countries. However, the new chips are completely designed, manufactured, and tested in India, utilizing Indian equipment and knowledge at facilities that were nonexistent only a few years ago.
This accomplishment is more than just a token one. Numerous devices around the world, like as power management systems, industrial machinery, automobile controls, and low-cost smartphones, are still powered by the 28nm node.
Legacy and embedded systems, which are still essential to global supply networks, are served by the 90nm process. By focusing on these nodes, India is putting itself in a position to service up to 60% of the global semiconductor market volume—segments that are essential but underserved because of supply chain vulnerabilities brought on by reliance on China and Taiwan as well as geopolitical issues.
Significant government incentives and policy support are behind the implementation, including the creation of several fabrication facilities nationwide and the India Semiconductor Mission’s (ISM) ₹76,000 crore incentive program.
Leading companies like Tata Electronics, working with Taiwan’s PSMC, are leading the way with their flagship Dholera fabrication plant in Gujarat and other facilities being built in Assam and Uttar Pradesh.
According to Minister Vaishnaw, the chips are currently undergoing extensive testing, and mass production will start as soon as they are validated. This project is a commercial product meant to be integrated into global supply chains and real-world applications; it is neither a prototype nor a ceremonial launch. Beyond chips, the government’s aim includes building a strong ecosystem, luring international investments from firms like Foxconn and Micron, and promoting the repatriation of Indian engineering talent from abroad.
Wide-ranging effects include less reliance on imports (India now imports all of its semiconductors), improved national security, the creation of jobs in highly skilled industries, and a more solid basis for future technological development. The action also fits with larger goals in AI and digital infrastructure, establishing India as a full participant in the global semiconductor business rather than merely a customer or designer.
This initial stage establishes vital infrastructure and knowledge for future advancement, even though India is not trying to jump straight to the most advanced nodes. It is a turning point that marks India’s transition from a service-based economy to one with genuine digital independence and manufacturing capacity. Thus, the introduction of the 28nm and 90nm chips marks not only a technological triumph but also a strategic shift towards independence, worldwide competitiveness, and a new era in India’s digital history.
