India is set to make a historic leap in its technological and industrial landscape with the rollout of its first indigenously produced semiconductor chip by the end of 2025. 

This milestone, confirmed by Union IT Minister Ashwini Vaishnaw, marks the culmination of years of policy initiatives, infrastructure investments, and strategic partnerships aimed at transforming India from a global design powerhouse into a nation capable of full-fledged chip manufacturing.

The chips, built on 28nm and 90nm process nodes, are not at the cutting edge of global semiconductor technology—where industry leaders like TSMC and Intel are producing chips at 3nm and moving towards 2nm—but their significance for India is profound.

Until now, India’s involvement in the semiconductor value chain was largely limited to chip design, with actual manufacturing outsourced abroad. The new chips, however, are designed, fabricated, and tested entirely on Indian soil, using Indian machinery and expertise in facilities that did not exist just a few years ago.

This achievement is not merely symbolic. The 28nm node continues to power a vast array of global electronics, including automotive controllers, industrial equipment, power management systems, and budget smartphones.

The 90nm process serves legacy and embedded systems, which remain critical to supply chains worldwide. By targeting these nodes, India is positioning itself to serve up to 60% of the global chip market volume—segments that are vital yet underserved due to geopolitical tensions and supply chain vulnerabilities associated with dependence on China and Taiwan.

The rollout is backed by substantial government incentives and policy support, including the India Semiconductor Mission (ISM) with a ₹76,000 crore incentive scheme, and the establishment of multiple fabrication units across the country.

Major players such as Tata Electronics, in collaboration with Taiwan’s PSMC, are at the forefront, with the flagship Dholera fabrication plant in Gujarat and additional units under construction in states like Assam and Uttar Pradesh.

Minister Vaishnaw has emphasised that the chips are already undergoing rigorous testing, with mass production set to begin upon validation. This initiative is not a prototype or a ceremonial launch; it is a commercial product intended for integration into real-world applications and global supply chains. The government’s vision extends beyond chips to fostering a robust ecosystem, attracting global investments from companies like Micron and Foxconn, and encouraging the return of Indian engineering talent from overseas.

The implications are far-reaching: reduced import dependence (India currently imports all its semiconductors), enhanced national security, job creation in high-skilled sectors, and a stronger foundation for further technological advancement. The move also aligns with broader ambitions in AI and digital infrastructure, positioning India as not just a consumer or designer, but a full participant in the global semiconductor industry.

While India is not attempting to leapfrog directly to the most advanced nodes, this first step lays critical infrastructure and expertise for future progress. It is a foundational moment that signals India’s shift from being a service provider to a nation with true digital autonomy and manufacturing capability. The launch of the 28nm and 90nm chips is, therefore, not just a technical achievement, but a strategic pivot towards self-reliance, global competitiveness, and a new chapter in India’s digital narrative.

Agencies