First all-Indian chips to debut this year, 25 more local designs in the works

Table of Contents

28nm and fatter processes first, says minister, as semiconductor supply chain players cash in.

India's goal of becoming a significant player in semiconductor manufacturing is expected to become a reality later this year with the launch of the country's first domestically designed and manufactured silicon chip.

Minister for Railways, Communications, Electronics and Information Technology Ashwini Vaishnaw teased the arrival of the chip in a video interview that took place at the World Economic Forum in Davos on Thursday.

Vaishnaw stated that a chip will be available in August or September, and India's first semiconductor fabrication plant will become operational in 2026 (which is likely a reference to the project backed by Powerchip from Taiwan and Tata from India).

The team in India is working to expand its chip manufacturing capabilities to meet the rising global demand for semiconductors, and also to provide an alternative to Chinese and Taiwanese suppliers that buyers fear may become unreliable due to international tensions. To boost its chip production, the Indian government has set up a $10 billion incentive program to support the emerging industry.

The announcement by the IT minister of a new kit won't immediately make India a major player in the market for high-tech computer chips used in artificial intelligence, servers, and powerful computers.

Vaishnaw mentioned that the most advanced of India's initial semiconductors will be designed using a 28nm process. Currently, the world's leading chipmakers are working on reducing the process to 2nm. Still, a lot of devices will operate efficiently with chips made on a 28nm process, and more advanced manufacturing techniques aren't necessary for many semiconductors.

By around 2026 or 2027, Vaishnaw predicts that Indian manufacturers will adopt more sophisticated chip production methods.

He stated that 25 semiconductor designs, "with IP rights held in the country," are in prospect.

Unfortunately, the minister didn't provide any information about those design specifics. Despite this, the Indian government's policy aims for the country to become capable of producing its own Systems on Chips for servers, smartphones, automobile applications, IoT devices, and microcontrollers. Pursuing this goal has led the nation to concentrate its research and development efforts on the RISC-V instruction set architecture, which is free to use and distribute.

Computer chip developers in India have already used RISC-V to create some relatively simple microprocessor designs.

In the interview, Vaishnaw stated that India is already working to develop its domestic semiconductor manufacturing industry by encouraging companies that provide chemicals and gases essential for the chipmaking process to establish facilities in the country. These companies reportedly showed a strong interest in setting up operations in India at a recent event.

The minister is certainly enthusiastic about India's progress, but a 2024 report by the US think tank, the Information Technology and Innovation Foundation (ITIF), suggests that the nation may face challenges becoming a major player, due to its unpredictable policymaking and the significant complexity of semiconductor manufacturing.