India's ambitious journey toward semiconductor self-reliance reached a pivotal moment when Union IT Minister Ashwini Vaishnaw announced that the country's first indigenous semiconductor chip, targeting the strategically important 28-90 nanometre technology segment, will debut by the end of 2025. 

This landmark achievement, revealed at the Confederation of Indian Industry's Annual Business Summit on May 29, 2025, represents the culmination of a focused three-year manufacturing initiative that began in 2022 and marks India's entry into the global semiconductor fabrication ecosystem.

The announcement underscores India's calculated approach to capturing a significant portion of the global chip market, specifically targeting a technology node that accounts for approximately 60% of worldwide semiconductor demand and serves critical applications in automotive, telecommunications, power systems, and railway technologies. With six fabrication units currently under construction and a broader semiconductor ecosystem taking shape under the ₹76,000 crore India Semiconductor Mission, this development positions India to reduce its dependence on imported chips while establishing itself as a key player in the global semiconductor supply chain.

Strategic Significance

The announcement of India's first indigenous semiconductor chip represents a carefully orchestrated entry into the global semiconductor manufacturing landscape, with profound implications for the country's technological sovereignty and economic competitiveness. Minister Vaishnaw's revelation at the CII Summit emphasized that this achievement stems from a "focused approach" that deliberately targets a market segment representing 60% of global semiconductor demand. This strategic positioning reflects India's pragmatic understanding of market dynamics and its commitment to establishing a commercially viable foundation for its semiconductor industry.

The timing of this announcement is particularly significant given the global semiconductor market's trajectory toward surpassing USD 1 trillion by 2030. India's entry into chip production during this period of unprecedented growth positions the country to capitalize on increasing global demand while simultaneously addressing its domestic technology requirements. The minister's emphasis on building "not just fabrication capacity but an entire ecosystem" demonstrates India's comprehensive vision that extends beyond mere manufacturing to encompass intellectual property development, product design, and standardization.

The choice to focus on the 28-90 nm technology segment reflects a nuanced understanding of market opportunities and technological realities. While smaller nanometre measurements offer greater processing power and energy efficiency, the 28-90 nm category remains crucial for industrial and embedded applications, providing India with immediate utility and market traction. This strategic decision aligns with India's broader manufacturing capabilities and creates a foundation for eventual advancement to more sophisticated technology nodes.

Technical Specifications And Applications

The 28-90 nanometre technology segment represents a mature and versatile platform that serves as the backbone for numerous critical applications across diverse industries. In semiconductor manufacturing, nanometre measurements indicate the size of transistor features, with the 28-90 nm range offering an optimal balance between performance, cost-effectiveness, and manufacturing complexity. This technology node has proven its commercial resilience, maintaining approximately 7.5% of the foundry market share, which translates to a substantial $15 billion market opportunity as the foundry market approaches $200 billion by 2030.

The applications for 28-90 nm chips span a broad spectrum of industries that are particularly relevant to India's economic priorities and domestic market needs. In the automotive sector, these chips power critical systems including engine management, safety features, and emerging electric vehicle technologies. The telecommunications industry relies heavily on this technology for network infrastructure, base stations, and consumer devices, while power systems utilize these chips for energy management and grid optimization. The railway sector, where Minister Vaishnaw also holds portfolio responsibilities, represents another significant application area, with these chips enabling advanced signalling systems, train control technologies, and logistics management platforms.

Industry experts have highlighted the versatility of 28 nm technology, noting its capability across diverse applications including central processing units, graphics processing units, wearables, smartphones, tablets, and home entertainment systems. This broad applicability ensures that India's initial semiconductor manufacturing efforts will address multiple market segments simultaneously, creating economies of scale and reducing market risk. The technology's maturity also means that manufacturing processes are well-established, reducing the technical challenges associated with India's entry into semiconductor fabrication.

Future Outlook And Strategic Implications

The successful launch of India's first indigenous semiconductor chip establishes a foundation for sustained growth and technological advancement in one of the world's most critical technology sectors. The timeline projections, with initial production expected by September-October 2025 according to some reports, create concrete milestones for measuring progress and maintaining momentum. The government's commitment to continuous investment in research and development ensures that initial manufacturing capabilities will evolve toward more advanced technologies over time.

The strategic implications of India's semiconductor success extend beyond economic considerations to encompass national security and technological sovereignty. Domestic chip production capabilities reduce dependence on potentially volatile international supply chains while creating options for developing specialized semiconductors tailored to specific Indian requirements. This capability becomes increasingly important as semiconductors become more deeply embedded in critical infrastructure, defence systems, and strategic technologies.

The development of India's semiconductor ecosystem also creates opportunities for international partnerships and technology collaboration on more favourable terms. Countries and companies seeking reliable semiconductor supply sources will view India as an increasingly attractive partner, particularly for applications requiring the 28-90 nm technology segment. These partnerships can accelerate technology transfer, provide access to international markets, and support the development of more advanced manufacturing capabilities.

Looking ahead, the success of the initial 28-90 nm manufacturing initiative creates a platform for advancing toward more sophisticated technology nodes. The experience gained in manufacturing, quality control, and supply chain management provides essential foundations for eventual progression to 14 nm, 7 nm, and beyond. The development of design capabilities, intellectual property, and standardization expertise ensures that India's semiconductor ecosystem will continue evolving toward higher-value activities and more advanced technologies.

Conclusion

India's imminent launch of its first indigenous semiconductor chip in the 28-90 nm technology segment represents a transformative achievement that positions the country as an emerging player in the global semiconductor ecosystem. Minister Ashwini Vaishnaw's announcement at the CII Annual Business Summit confirms that three years of focused development since 2022 have successfully established manufacturing capabilities that target 60% of the global semiconductor market demand. The strategic choice of the 28-90 nm segment, with its applications across automotive, telecommunications, power systems, and railway technologies, demonstrates India's pragmatic approach to entering the semiconductor manufacturing sector with immediate commercial viability and market relevance.

The comprehensive approach to ecosystem development, including six fabrication units under construction, substantial government investment through the ₹76,000 crore Semicon India programme, and strategic partnerships with international technology providers, ensures that India's semiconductor initiative extends beyond individual manufacturing achievements to encompass a sustainable industrial transformation. The integration of research and development capabilities, start-up innovation, and culturally grounded AI development creates a foundation for continued technological advancement and competitive differentiation in the global marketplace.

IDN