India to Build Full Semiconductor Stack with 25 Chipsets

• India targets 25 homegrown chipsets for global markets.
• Arm’s Bengaluru facility to design 2nm chips, boosting R&D.
• ISM 2.0 focuses on equipment, materials for sustainable ecosystem.

According to The Economic Times, India's aspiration of becoming a 'product nation' by developing 25 strategic chipsets for domestic and global markets based on national intellectual property was revealed by Union Minister for Electronics and IT Ashwini Vaishnaw. Its infrastructure will offer not only design but also manufacture and equipment, materials, and talent, giving India significant importance to the development of high-end advanced semiconductor research and development.

Vaishnaw mentioned that with this 2nm program, Arm has become the second company after Renesas Electronics, which established 3nm design centers in Noida and Bengaluru in May 2025, to cross the benchmark in advanced chip development in India.

Also Read: Odisha Signs 2,655 Cr MoUs at SEMICON India 2025 Conclave

The second phase of the Indian semiconductor mission (ISM 2.0) focuses on fabrications, assembly, testing, marking, and packaging (ATMP); and their sustainability will be guaranteed through equipment and materials. The $1 billion fund for the India Deep Tech Alliance Fund will also be focused on supporting products in the semiconductor, AI, and biotech spaces.

The minister pointed to important work around securing rare earth elements and critical minerals with the recent approval by the Union Cabinet of the Critical Minerals Mission. India has abundant rare earth elements in its beach sands, and India's government would like to develop processing technologies to mitigate its reliance on imports. Although the ISM 2.0 outlay is waiting for approval, Vaishnaw emphasized creating a robust ecosystem in India for chemicals, gases, and substrates. This falls within the context of India's expected $100 billion semiconductor market by 2030, promoting economic development and technological sovereignty.