India is charting a decade-long strategy to design and manufacture indigenous 3-nanometre (nm) semiconductor chips by 2032, a move that could accelerate the nation’s entry into the highest echelons of global tech manufacturing and support smart urban technologies. The deadline was outlined by a senior government official overseeing electronics and information technology at a strategic meeting with domestic chip designers and startups, underscoring efforts to reduce import dependence and strengthen local ecosystems amid burgeoning demand for AI-ready hardware.
The semiconductor initiative is anchored in an expanded version of the Design-Linked Incentive (DLI) Scheme, which incentivises local design capabilities while laying the groundwork for manufacturing infrastructure. Under the policy’s next phase, the government plans to support at least 50 fabless semiconductor ventures and prioritise six core chip categories — including compute, radio frequency (RF), networking, power management, sensors and memory — that together underpin most modern digital devices. Industry strategists say moving from design prowess to full-fledged manufacturing at sub-10nm process nodes requires coordinated investment, talent development and ecosystem maturation. Today, India’s semiconductor landscape primarily focuses on design and higher-level assembly, with limited local fabrication capacity. By setting a clear timeline for 3nm production — the sophisticated nodes used in high-end smartphones, cloud servers and AI accelerators — policymakers aim to catalyse domestic value creation in critical technology supply chains.
Urban technology planners suggest that local semiconductor production could have cascading effects for smart cities and connected infrastructure. Chips developed and manufactured domestically may lower costs for emerging applications such as edge computing in urban services, intelligent transportation systems and community-level IoT deployments. Localised production also offers potential resilience benefits as cities adopt digitised solutions while managing cybersecurity risks and supply chain vulnerabilities. According to public statements, a milestone year of 2029 has been set for intermediate capability, where broader design and mid-level manufacturing strength is expected across 70–75% of application needs. This incremental approach is intended to build technological depth before the 2032 target for the most advanced nodes.
Economic development experts highlight that India’s semiconductor push aligns with global trends as nations vie for technological sovereignty in an era dominated by artificial intelligence, electrification and digital services. As part of this vision, linking academia, research institutions and industry players will be crucial for creating a pipeline of skilled engineers and designers capable of supporting cutting-edge fabrication technologies. However, analysts caution that scaling fabrication — often called “fabs” — at the 3nm level involves significant capital costs and supply chain commitments, including access to advanced materials, precision tooling and environmentally sound manufacturing processes. India’s policy architects are reportedly engaging international partners and leveraging earlier approvals for semiconductor plants to bridge these gaps.
As India advances toward 2032, the semiconductor agenda will remain a litmus test for how effectively public policy can transform design strength into resilient industrial capacity — with implications for economic diversification, technological leadership and future-ready urban ecosystems.
