India has moved a step forward in its semiconductor strategy. The global chipmaker Qualcomm unveiled a two-nanometre (nm) chip designed in India, focusing on the nation’s role in advanced chip-making. The development comes post the government’s new initiative to diversify domestic semiconductor capability.

Union Minister Ashwini Vaishnaw highlighted the milestone at an event in Bengaluru, while the government outlined new policy support to expand the ecosystem from design to equipment and talent development.

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2nm Chip Milestone Boosts India’s Design Credentials

Qualcomm’s introduction of its two-nanometre chip signals a shift in India’s role in the global semiconductor industry. The nation is moving beyond service and backend work into high-end chip design.

The successful tape-out of the 2nm design reflects international firms’ growing trust in India’s engineering capabilities, with key design work carried out by its local engineering teams.

“India is transitioning from a support centre for technology giants to a hub for innovation and deep-tech semiconductor design. The 2nm node is among the most advanced in the industry and is widely used in cutting-edge computing, mobile and AI-oriented chips. It is seen as an indicator of engineering depth.”

-Ashwini Vaishnaw, Union Minister for Electronics and Information Technology

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Government Push: ISM 2.0 in Budget

In parallel with industry milestones, the Indian government is expanding policy support through the India Semiconductor Mission (ISM) 2.0, as outlined in the Union Budget 2026. The programme shifts the focus to the production of semiconductor equipment, materials, intellectual property, and supply chains within the country. The government plans to move beyond earlier incentives that concentrated majorly on fab infrastructure.

Under the new framework, a provision of ₹1,000 crore has been set aside for the fiscal year 2026–27 to support industry-led research, talent development and ecosystem partnerships. A key priority is to nurture chip design companies and startups capable of bringing products to market, alongside attracting equipment manufacturers, chemical and gas producers and other partners critical to a complete semiconductor value chain.

The government has also built a substantial talent pipeline, with tens of thousands of semiconductor-trained engineers already in the workforce. It will continue to strengthen this base as part of the mission’s long-term strategy.