Why 2 nm chips matter in India's chip revolution
India has taken another big step in its semiconductor journey with the recent inauguration of ARM's new design office in Bengaluru. The focus of the centre is on building next-generation 2-nanometre (nm) chip technology, a move that experts say could change the country's role in the global electronics industry.
ANI
Sep 20, 2025 12:19 IST
New Delhi [India], September 20 (ANI): India has taken another big step in its semiconductor journey with the recent inauguration of ARM's new design office in Bengaluru. The focus of the centre is on building next-generation 2-nanometre (nm) chip technology, a move that experts say could change the country's role in the global electronics industry.
"Moving from 7 nm and 5 nm chips to 2 nm means India is stepping into a zone that only a few countries have reached. These chips can make devices lighter, consume less power and perform better, supporting future technology such as artificial intelligence and advanced computing," a government release stated.
Semiconductors are the tiny electronic parts that act like the "brain" of devices, from mobile phones to satellites. Each chip is made of millions of switches, called transistors, that control the flow of electricity. The smaller the size of these transistors, the faster and more efficient a chip becomes.
Union Minister Ashwini Vaishnaw inaugurated the Bengaluru facility on September 16. Earlier in May 2025, he had also opened two chip design centres in Noida and Bengaluru, which worked on 3 nm technology. At that time, he highlighted how India had already moved past 7 nm and 5 nm designs, and reaching 3 nm marked a new level of innovation. Now, the move towards 2 nm is seen as a leap that adds momentum to India's ambition of becoming a global semiconductor hub.
The government release said that the India Semiconductor Mission has approved ten projects across six states, with a total investment of Rs. 1.6 lakh crore. The Mission itself has an outlay of Rs. 76,000 crore to strengthen the country's ecosystem. Electronics manufacturing in India has grown six times in the last eleven years, creating a sharp rise in semiconductor demand.
Domestic startups are also playing a major role. Under the Design Linked Incentive (DLI) scheme, 23 chip design projects have been cleared. Around 72 companies are now using advanced design tools, and students from 25 institutions have successfully designed 28 chips. At present, 278 institutions and universities are engaged in research and training, building a talent pool for the future.
Globally, semiconductors are projected to be a USD one trillion industry by 2030. India's own market is expected to reach USD 100-110 billion by then. Today, Taiwan, South Korea, Japan, China and the United States lead the field, with Taiwan producing more than 60 per cent of the world's semiconductors and nearly 90 per cent of advanced chips. With supply chains concentrated in a few regions, India is emerging as a trusted partner to balance global production.
"India is transitioning from assembly of devices to advanced design and chip manufacturing. The focus is on designing and building chips in India for the world. The upcoming 2 nm milestone represents a decisive step in technological self-reliance. This progress strengthens India's vision of Atmanirbhar Bharat and positions the nation as a leader in the global semiconductor industry," the release said. (ANI)
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