The 2nm Chip: How India is Poised to Lead in Semiconductor Innovation

India is taking a major step towards technological self-sufficiency with its move into 2nm chip technology. A new ARM design office in Bengaluru will be central to this effort, positioning India amongst a select group of nations with the capabilities to produce these advanced chips. This signifies a significant milestone in India’s ambition to become a global semiconductor hub. 2nm chips will be manufactured and designed in India, with the ARM chip production handled by the British semiconductor company. The Union Minister of Information and Technology, Ashwini Vaishnaw, launched the new center in Bengaluru on September 16th, where the 2nm chips will be developed. Preceding this, 3nm chip design centers were opened in Noida and Bengaluru in May 2025. The advantage of 2nm technology stems from the diminutive size of its transistors, leading to enhanced processing speeds and decreased energy consumption. This is crucial for innovations in smartphones, artificial intelligence, and supercomputing. Before this development, only Taiwan, South Korea, the United States, China, and Japan were close to this technology. India’s entry into this area places it amongst global technology leaders. Presently, flagship smartphones use 3nm chip processors; the next generation is expected to feature 2nm chips. The global semiconductor market is anticipated to reach $1 trillion by 2030, with India aiming to contribute between $100-110 billion. This development strengthens the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives, positioning India as a key player in the global chip supply chain. Under the India Semiconductor Mission, 10 projects have been approved in six states, with investments totaling ₹1.6 lakh crore. Government support for this initiative is planned at ₹76,000 crore. Electronics manufacturing in the country has grown sixfold over the past 11 years, increasing the demand for semiconductors. The government aims for self-reliance not only in assembly but also in design and manufacturing.