India’s First Indigenous Chip by 2025: A Leap Toward Tech Sovereignty

Highlights

• India to launch first homegrown semiconductor chip by 2025.
• 28-90nm chips target automotive, telecom, and industrial demand.
• Semiconductor mission boosts tech sovereignty, jobs, and global partnerships.

India is on the cusp of a technological revolution as it gears up to launch its first indigenously produced semiconductor chip by the end of 2025. Announced by Union Minister for Electronics and IT Ashwini Vaishnaw, this chip, ranging between 28 to 90 nanometers, is a significant step toward establishing India as a global semiconductor powerhouse. With six fabrication units under construction, this development underscores the nation’s ambition to reduce reliance on foreign chipmakers and bolster its tech ecosystem.

The India Semiconductor Mission

Launched in December 2021 with a ₹76,000 crore outlay, the India Semiconductor Mission (ISM) drives this transformative journey. Administered by the Digital India Corporation, ISM focuses on chip design, fabrication, and advanced packaging. Collaborations with global players like NXP Semiconductors, Analog Devices, and Micron Technology, alongside domestic giants like Tata, are accelerating progress. For instance, Micron’s $2.75 billion assembly plant in Gujarat is expected to create thousands of jobs, while Tata’s partnership with Taiwan’s Powerchip Semiconductor Manufacturing Corp targets 28nm chips for automotive and consumer electronics.

Why 28-90nm Chips Matter

While not as advanced as Taiwan’s 3nm chips, the 28-90nm range addresses 60% of global semiconductor demand, powering automotive systems, telecommunications, and railways. These “legacy” chips are critical for stable, high-volume applications, making India’s focus strategic. The chips’ development involves overcoming challenges like achieving parts-per-billion purity levels, requiring significant R&D and investment. India’s talent pool, highlighted by Minister Vaishnaw’s observations of Indian engineers in Silicon Valley, positions the country to meet these demands.

Economic and Geopolitical Impact

India’s semiconductor push is both an economic and geopolitical move. With the global chip market projected to reach $63 billion in India by 2026, the country is attracting investments from Nvidia, AMD, and others looking to diversify from China. This “trust-shoring” strategy leverages India’s geopolitical stability and skilled workforce. The initiative also aligns with the Make in India campaign, fostering local innovation and intellectual property development.

Challenges and Future Outlook

Despite progress, challenges remain. Developing cutting-edge chips requires years of R&D and billions in investment, areas where India lags behind giants like TSMC. However, strategic partnerships and government incentives are bridging the gap. The second phase of ISM, expected to be announced soon, aims to attract higher-value fabrication units. As India builds its semiconductor ecosystem, the 2025 chip launch could mark the beginning of a new era of tech sovereignty.