India is preparing for one of the biggest technology transformations in its modern history. The country has announced an ambitious goal to start manufacturing 3-nanometer (3nm) advanced semiconductor chips by 2032, a move that could place it among a small group of global leaders in chip production.
Union Minister for Electronics and Information Technology Ashwini Vaishnaw recently shared this long-term plan in an interview, outlining how India will slowly move from basic chip manufacturing to producing some of the world’s most advanced processors. Backed by large investments, new factories, and strong government support, this effort reflects India’s determination to become a serious player in the global semiconductor industry.
At a time when computer chips power everything from smartphones and electric vehicles to artificial intelligence systems and defense equipment, India sees this mission as both an economic opportunity and a strategic necessity.
A Step-by-Step Roadmap to Advanced Chip Production
Unlike countries that built their chip industries decades ago, India is starting relatively late. Semiconductor manufacturing is extremely complex and expensive. It requires advanced machines, ultra-clean factories, reliable power and water supply, and highly trained engineers.
To manage this challenge, the government has designed a gradual roadmap instead of jumping directly into advanced chip production.
According to the plan, four semiconductor plants developed by CG Semi, Kaynes, Micron, and the Tata Group will begin production next year. These factories will manufacture chips using older technology nodes, which are still widely used in everyday products such as household electronics, cars, telecom equipment, and industrial machines.
These early projects are not meant to compete with the world’s most advanced chips but to help India gain hands-on experience, build local expertise, and create a reliable supply chain. Officials believe that mastering these foundations is essential before moving to more advanced technology.
Over $20 Billion Investment Signals Serious Intent
India’s semiconductor push is supported by significant financial commitment. More than 10 major projects worth over $20 billion have already been approved or are under development.
This funding comes from a mix of government incentives and private investment by Indian and international companies. The government is offering financial support, tax benefits, infrastructure development, and long-term policy stability to attract global chipmakers who may otherwise choose established hubs such as Taiwan, South Korea, or the United States.
These projects are expected to create thousands of direct jobs for engineers, technicians, and factory workers, along with many indirect jobs in construction, logistics, chemical supply, equipment maintenance, and research.
Beyond employment, officials see this investment as a way to strengthen India’s manufacturing sector and reduce reliance on imported electronics.
India Aims to Lead in Chip Assembly and Testing by 2028
Before reaching the 3nm milestone, India wants to dominate another critical stage of the semiconductor supply chain: assembly, testing, and packaging.
After chips are manufactured, they must be cut, tested, protected, and packaged before being installed into electronic devices. This stage is essential and offers large-scale employment opportunities, while being less technically demanding than full chip fabrication.
The government aims to make India a global hub for these services by 2028. Officials describe this as a “tipping point” that will allow the country to integrate deeply into global chip supply chains and earn the trust of international technology companies.
Once India proves itself reliable in assembly and testing, attracting partners for advanced manufacturing will become easier.
Why 3nm Chips Are So Important
The ultimate goal is the production of 3nm chips by 2032, which represent the cutting edge of semiconductor technology.
In simple terms, a smaller nanometer size means more transistors can fit onto a chip. This allows devices to become:
- Faster
- More energy efficient
- More powerful
- Less heat-producing
Today, only a few companies in the world can manufacture chips at this level. These advanced processors are used in high-end smartphones, artificial intelligence systems, data centers, electric vehicles, aerospace technology, and military equipment.
If India achieves this target, it will join a very small group of nations capable of building the digital brains behind future technologies.
Rising Demand from AI, Electric Vehicles, and Smartphones
India’s semiconductor ambitions come at a time when global chip demand is rising sharply.
Artificial intelligence applications require massive computing power. Electric vehicles rely on dozens of specialized chips to manage batteries, safety systems, and navigation. Smartphones are becoming more powerful every year, while industries are rapidly adopting automation and robotics.
Experts believe that chip shortages, like those seen during the pandemic, could happen again if supply does not keep up with demand. Countries around the world are therefore racing to secure domestic chip production capacity.
India wants to be part of this new global supply chain not just as a consumer, but as a manufacturer and exporter.
Apple’s iPhone Exports Highlight Manufacturing Growth
One of the strongest signs of India’s improving electronics manufacturing ability is seen in Apple’s production numbers.
In 2025, iPhone exports from India reached $23 billion, representing an 85 percent increase compared to 2024. This sharp rise shows that global companies are increasingly comfortable building complex electronic devices in the country.
Although iPhones are assembled in India rather than fully manufactured, the process still requires high precision, quality control, and reliable logistics. Industry experts see this success as proof that India’s workforce, suppliers, and infrastructure are steadily improving.
Government officials often point to this example as evidence that the country can handle more advanced manufacturing tasks in the future, including semiconductor production.
Major Challenges Remain on the Road to 3nm
Despite strong momentum, analysts warn that India’s path to advanced chip manufacturing will be difficult.
One of the biggest obstacles is access to extreme ultraviolet (EUV) lithography machines, which are essential for producing chips at 3nm scale. These machines are extremely expensive, costing more than $150 million each, and are manufactured by only one supplier in the world.
Securing these machines will require not only large investment but also international cooperation and political trust.
Another challenge is forming strong partnerships with experienced global chipmakers who possess decades of technical knowledge. These companies may be cautious about sharing sensitive technology with new competitors.
India will also need to build a complete ecosystem that includes:
- Highly trained semiconductor engineers
- Reliable electricity and water supply
- Advanced chemical and materials manufacturing
- Strong intellectual property protection
- Stable long-term government policies
Any weakness in these areas could slow progress or increase costs.
Government Confidence and Long-Term Vision
Despite these challenges, Indian officials remain confident.
They believe that the country’s large domestic market, political stability, and growing reputation as a manufacturing destination will attract international partners. The government also argues that rising global demand for chips will eventually force companies to diversify production beyond traditional locations.
The 2032 goal is not presented as a guaranteed outcome, but as a realistic target that can be achieved through consistent policy, steady investment, and patient development.
For India, the semiconductor mission is about more than technology. It is also about national security, economic independence, and global influence.
Modern economies depend heavily on chips for defense systems, banking networks, healthcare equipment, satellites, transportation, and communication. Producing these critical components domestically would reduce vulnerability to global disruptions and geopolitical tensions.
Conclusion
India’s plan to manufacture 3nm chips by 2032 marks a bold new chapter in its industrial journey.
With four chip plants expected to start production next year, over $20 billion already committed, a strategy to lead in assembly and testing by 2028, and growing confidence from electronics exports like iPhones, the foundation for a semiconductor ecosystem is being carefully built.
The journey will be long and challenging, requiring advanced technology, global partnerships, and unwavering policy support. But if India succeeds, it will not only strengthen its economy but also reshape its position in the global technology landscape.
From being known primarily as a software powerhouse, India could evolve into a full-scale technology manufacturing nation producing the tiny chips that will drive the world’s future innovations.
