India’s Bold Leap: Building 2nm Chips and Indigenous NVIDIA-Level GPUs

Made in India, Meant for the World.

In a daring and historic move, the Indian government has officially announced its plan to develop 2nm semiconductor chips and indigenous GPUs (Graphic Processing Units), a leap that signals India's serious intent to position itself at the forefront of next-gen computing technology.

This development comes amid shifting global tech dynamics, rising geopolitical tensions, and increasing control by dominant powers over critical technology exports. Let’s unpack the significance of this decision, what 2nm chips and GPUs really are, and what this means for India's future.

The Announcement: A Giant Leap for Indian Tech

The government has declared its plan to develop 2-nanometer chips, the most advanced category of semiconductor chips to date. In addition, it will begin developing domestic alternatives to NVIDIA-grade GPUs, the high-performance processors that power AI, machine learning, and modern computing.

To fund this ambitious endeavor, the government has allocated $200 million to the Centre for Development of Advanced Computing (C-DAC), headquartered in Bengaluru. This is in addition to the ₹1056 crore C-DAC received in FY24, signaling serious long-term commitment.

What Are 2nm Chips and Why Are They a Big Deal?

In semiconductor technology, the performance and efficiency of a chip are measured in nanometers (nm). The smaller the nanometer size, the more transistors a chip can contain, leading to faster speeds, lower power consumption, and better thermal efficiency.

3nm chips are currently the most advanced chips in production, manufactured by a handful of companies like TSMC, MediaTek, and IBM.
2nm chips are still under development globally and no country has yet achieved mass production.
These chips are expected to outperform 3nm chips significantly in every metric speed, power efficiency, and heat management.

India’s goal? To be among the first few nations to indigenously develop this cutting-edge technology.

India’s Plan: Competing With the Best

The government’s roadmap is crystal clear:

Start from scratch to build 2nm chips and high-end GPUs domestically.
Match the performance of NVIDIA’s most powerful GPUs.
Partner with TSMC (Taiwan Semiconductor Manufacturing Company) to accelerate development.
Reduce production costs by up to 50% compared to global counterparts.
Showcase a preview of India’s own chip design by the end of 2025.
Target full rollout by 2030.

While NVIDIA plans to roll out its 2nm GPUs by 2028, India is ambitiously aiming for the same benchmark by 2030, but at a fraction of the cost.

Why This Move Is Daring and Strategic

1. Global Dependence Ends Here

Currently, India depends heavily on foreign nations particularly the US, Taiwan, and China for high-performance chips and GPUs. By developing its own, India can:

Secure its digital infrastructure
Power its own AI systems, defense platforms, and cloud services
Avoid being vulnerable to export restrictions

2. Responding to US Tech Restrictions

Earlier in January, under the Biden administration, the US imposed new AI export control rules. These rules empowered the US to halt exports of high-end GPUs and AI equipment to any country deemed “non-cooperative.” India’s name was removed from the safe list.

This move served as a wake-up call. India realized it could no longer rely on unpredictable foreign policies and resolved to build self-reliant alternatives.

Industry Response: Optimism and Support

The announcement has been warmly welcomed by Indian industry leaders. Notably, Ajai Chowdhry, co-founder and chairman of HCL, stated:

Having domestic GPUs will obviously be much better. We won’t have to depend on American-based companies anymore.

With government support, industry partnerships, and global collaboration, India's ambitions are rapidly transitioning from vision to execution.

What’s Next?

By 2030, India aims to have:

Its own 2nm chip designs
Fully functional indigenous GPUs
These GPUs installed on Indian cloud servers and supercomputers
Reduced dependency on US or Chinese tech suppliers
A significant cost advantage over global chipmakers

This could empower India’s AI, defense, fintech, research, and deep tech sectors with a strong foundation in homegrown hardware.

Conclusion: A Defining Moment in India's Tech Journey

India’s decision to develop 2nm semiconductor chips and indigenous GPUs marks a defining moment in the country’s technological evolution. This move is not just about keeping pace with global innovation, it’s about shaping the future on India’s own terms.

By investing in chip design, forging global partnerships, and reducing reliance on foreign suppliers, India is building a roadmap for true digital sovereignty. The initiative reflects both a technological and geopolitical strategy in an AI-driven world.

If India succeeds and all signs point toward a focused, committed effort the country could soon transform from a tech consumer to a tech superpower. The next five years will be crucial and the world will be watching.