India’s semiconductor ambitions are entering a transformative stage. Abhishek Singh, Additional Secretary at the Ministry of Electronics and Information Technology, has confirmed that the country is now preparing to move from its current 28 nanometre fabs towards the production of advanced 5 to 7 nanometre chips. This marks a decisive step in India’s journey to becoming a competitive global player in the semiconductor industry.
Building on Strong Foundations
In the past four years since the launch of the India Semiconductor Mission in 2021, the country has taken semiconductor manufacturing from vision to tangible progress. Several assembly, testing, marking, and packaging plants have been approved, alongside fabrication units in partnership with major industry leaders. Tata Group is already working on fabs in Gujarat and Assam, while additional facilities have been cleared in Odisha and other states.
India’s semiconductor programme has already begun delivering milestones. On August 28, 2025, the country inaugurated one of its first end-to-end Outsourced Semiconductor Assembly and Test pilot facilities in Sanand, Gujarat. The first Made in India chip from this plant is expected soon, signaling that the ecosystem is maturing rapidly.
The government has committed significant financial resources to the sector. Out of the ₹76,000 crore Production Linked Incentive scheme announced earlier, nearly ₹65,000 crore has already been allocated. So far, ten semiconductor manufacturing projects worth over ₹1.60 lakh crore have been approved across six states, including Gujarat, Assam, Uttar Pradesh, Punjab, Odisha, and Andhra Pradesh.
The Leap to Advanced Nodes
Singh highlighted that while India began with 28 nanometre fabs, the real ambition is to rapidly move up the technology ladder. The government’s new Semiconductor 2.0 framework and the design-led incentive scheme are aimed at supporting this transition. The focus will not only be on advanced fabrication but also on design innovation, including AI chips and GPUs built in India.
He explained that semiconductors are at the heart of modern economies, powering critical areas such as healthcare, transport, communication, defence, and space exploration. By advancing into 5 to 7 nanometre chip production, India is positioning itself to play a crucial role in the artificial intelligence revolution and strengthen its strategic independence.
Strategic Significance
This transition is not just about manufacturing but about elevating India’s role in global technology. Advanced chips are essential for AI workloads, high-performance computing, and next-generation consumer devices. Singh stressed that India’s move toward designing GPUs and AI-specific chips will help the country tackle its own digital challenges while contributing to global innovation.
The semiconductor mission is also about national security and economic sovereignty. As countries worldwide race to secure chipmaking capabilities, India’s determination to climb the value chain reflects a strategic commitment to long-term technological leadership.
What Lies Ahead
With policy reforms under Semiconductor 2.0, increased investment, and international partnerships, India is setting the stage for rapid growth in this sector. The road ahead will demand cutting-edge research, talent development, and collaboration between government and industry. But the trajectory is clear. India wants to leapfrog into the future of chipmaking and ensure it plays a central role in the global technology supply chain.
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