The Indian government has unveiled a long-term roadmap aiming for 3nm semiconductor manufacturing by 2035. This 'Semicon 2.0' phase plans to shift production from current 28nm nodes to advanced technology to reduce import dependence. While this strategy targets localized supply chains for the auto and electronics sectors, investors should note the significant capital requirements and long-term execution risks inherent in advanced semiconductor manufacturing.
India has formalized a strategic roadmap to evolve its semiconductor capabilities, targeting the production of advanced 3-nanometre chips by 2035. Union Minister Ashwini Vaishnaw outlined this plan, termed 'Semicon 2.0,' which shifts the focus from current 28nm manufacturing to more sophisticated nodes. The primary goal is to address vulnerabilities in the supply chain for consumer electronics and the automotive industry, where global supply currently relies on a limited number of regions.
The strategy aims to create a self-sustaining environment. The initial phase of the government’s program was focused on building a basic fabrication footprint, with projects like the Tata Electronics facility at Dholera acting as a key pilot. The new phase, Semicon 2.0, seeks to move deeper into the value chain by attracting companies that produce high-purity chemicals, gases, and specialized equipment required for modern chipmaking.
Beyond fabrication, the government is placing a heavy emphasis on intellectual property and domestic hardware design. The official target is to have fully indigenous mobile phones—designed, branded, and manufactured in India—by October 2028. This push is supported by the availability of a large pool of design engineers, with authorities aiming to scale the number of deep-tech startups significantly to reduce the need for foreign technology.
However, building an advanced semiconductor ecosystem is a capital-intensive journey with long gestation periods. For investors, the success of this roadmap depends on several factors, including the actual speed of project execution and the ability to compete with established global leaders in Taiwan, South Korea, and the United States. Semiconductor manufacturing requires not just massive upfront investment but also a reliable supply of specialized talent, raw materials, and energy. Any delay in establishing the necessary supporting industries, such as chemical and gas supply chains, could impact the cost and timelines of these projects.
Investors may monitor the progress of upcoming project phases, as well as updates on incentives for domestic design firms. The focus will remain on whether these long-term targets can effectively translate into operational capacity and commercial viability for the domestic electronics and automotive sectors. Tracking the commissioning dates of new facilities and government policy updates will be important to understand the actual pace of this sector's development.