India is set to achieve a significant milestone in its semiconductor journey with the debut of its first domestically designed and built chip, expected to arrive in August or September 2025. Minister for Railways, Communications, Electronics, and Information Technology Ashwini Vaishnaw shared this update during an interview at the World Economic Forum in Davos.

While this development will not immediately position India as a major player in advanced chipmaking, it marks an important step toward establishing a self-reliant semiconductor ecosystem. The country's first fabrication plant, likely a joint project between Taiwan's Powerchip and India's Tata, is scheduled to begin operations in 2026.

Early Focus on 28nm Technology

India's first chip will utilize the 28nm process, which, while not cutting-edge compared to the 2nm processes pursued by global leaders like TSMC and Samsung, is well-suited for applications in automotive, IoT devices, microcontrollers, and consumer electronics. Minister Vaishnaw expressed optimism that more advanced processes could be adopted in 2026 or 2027, allowing Indian manufacturers to expand into higher-performance segments.

Building a Semiconductor Ecosystem

India is making significant efforts to grow its semiconductor manufacturing ecosystem, including encouraging suppliers of chemicals and gases crucial for chip production to set up facilities within the country. Vaishnaw noted that several companies have shown enthusiasm for investing in India during recent discussions.

The government has also launched a $10 billion subsidy scheme to attract global semiconductor players and create a reliable alternative to Chinese and Taiwanese suppliers amid growing geopolitical uncertainties.

A Focus on RISC-V Architecture and Indigenous Designs

India's R&D efforts have centered around the open-source RISC-V instruction set architecture, allowing Indian engineers to design modest microprocessors and build intellectual property (IP) rights domestically. Vaishnaw hinted at 25 semiconductor designs with IP rights held in India being in development, though he did not share further details.

India's semiconductor ambitions are supported by policies encouraging the development of Systems on Chips (SoCs) for servers, mobile devices, automotive applications, and IoT devices. However, achieving success in semiconductor manufacturing will require overcoming significant challenges, including the vast complexity of the process and what critics like the Information Technology and Innovation Foundation (ITIF) describe as unpredictable policymaking.

Outlook

India's chip debut in 2025 and the establishment of its first fab in 2026 are foundational steps toward its goal of becoming a key player in the global semiconductor industry. While its early focus is on mature technologies, these efforts position India to meet rising global chip demand and reduce reliance on traditional suppliers, laying the groundwork for future advancements in semiconductor manufacturing.