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Why 2 nm chips matter in India’s chip revolution

India just scored a major win in its push to become a semiconductor powerhouse. On September 16, Union Minister Ashwini Vaishnaw cut the ribbon on ARM’s new design center in Bengaluru, India. This hub zeroes in on developing cutting-edge 2-nanometer (nm) chip technology—a breakthrough that could reshape India’s spot in the global electronics world.

Jumping from older 7nm and 5nm chips to 2nm puts India in elite company, joining just a handful of nations at this advanced level. These tiny chips pack more power into slimmer, energy-saving devices. They fuel innovations like artificial intelligence (AI) and high-speed computing, according to a government statement.

Think of semiconductors as the brains behind everything from smartphones to satellites. They’re packed with millions of transistors—tiny switches that direct electricity. The smaller those transistors get, the quicker and greener the chips perform.

Vaishnaw has been on a roll with this. Back in May 2025, he launched two other chip design centers in Noida and Bengaluru, targeting 3nm tech. He pointed out how India had already skipped past 7nm and 5nm hurdles, and now 2nm ramps up the excitement. Experts see this as a bold stride toward turning India into a global semiconductor hub.

The India Semiconductor Mission drives much of this momentum. It has greenlit 10 projects across six states, pulling in a whopping Rs. 1.6 lakh crore in investments. The mission itself boasts Rs. 76,000 crore to build a robust ecosystem. Over the past 11 years, India’s electronics manufacturing has exploded sixfold, spiking demand for homegrown semiconductors.

Indian startups are jumping in too. Through the Design Linked Incentive (DLI) scheme, authorities approved 23 chip design projects. Now, 72 companies wield advanced design tools, while students from 25 institutions have crafted 28 chips. Even better, 278 universities and institutes focus on research and training, grooming the next wave of talent.

Looking ahead, the global semiconductor market could hit $1 trillion by 2030, with India’s slice reaching $100-110 billion. Heavy hitters like Taiwan, South Korea, Japan, China, and the US dominate today—Taiwan alone churns out over 60% of worldwide chips and nearly 90% of the advanced ones. But with supply chains too bunched up in a few spots, India steps up as a reliable partner to spread out production and ease risks.

India’s shift from just assembling gadgets to creating advanced chips right here marks real progress. The 2nm push underscores technological self-reliance and the Atmanirbhar Bharat vision. It cements India’s rising role as a leader in the global semiconductor industry, the government release adds.


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