Vikram-32 Debut Underscores India’s Push From Chip Importer to Innovator

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India unveiled its first fully indigenous 32-bit microprocessor at Semicon India 2025 on Tuesday, marking a milestone in its push to build a domestic semiconductor industry, signaling India’s commitment to catching up with other competitors in semiconductor manufacturing.

The processor, named Vikram-32, was developed by the Indian Space Research Organisation’s (Isro’s) Semiconductor Laboratory in Mohali and presented to Modi by Electronics and IT Minister Ashwini Vaishnaw at the opening of the summit in New Delhi.

Fabricated on a 180-nanometer CMOS line, the device has already been tested in space aboard the PSLV-C60 mission earlier this year, proving its resilience for launch and orbital conditions.

Vaishnaw called the handover “a moment of pride for any nation,” adding that the achievement was enabled by what he described as the prime minister’s “far-sighted vision, strong will and decisive action.”

Modi, in his inaugural address, cast semiconductors as “digital diamonds,” saying India was moving beyond assembly and back-end work toward a complete design-to-manufacturing ecosystem.

“The day is not far when India’s smallest chip will drive the world’s biggest change,” he said.

The prime minister linked the effort to his government’s broader industrial policy, which has pledged billions of dollars in subsidies to build capacity in electronics, renewable energy and defense manufacturing.

The launch of Vikram-32 came as India is trying to position itself as a reliable alternative in global chip supply chains at a time when governments from Washington to Tokyo are spending heavily to reduce dependence on a few geographies.

India’s semiconductor consumption is projected to reach $100–110 billion by 2030, according to government estimates, driven by demand from smartphones, cars and telecom equipment.

Officials said five fabrication units are under construction in the country, with one pilot line already operational and others expected to start production in coming months.

Global suppliers used the summit to signal support.

Christophe Fouquet, chief executive of Dutch lithography giant ASML Holding NV, told delegates the company was “dedicated to supporting India’s ambition whether through collaboration, knowledge exchange or talent.”

He said ASML’s lithography systems “can help India’s fabs to achieve cutting-edge performance,” though he declined to outline any concrete sales or partnership plans.

ASML is the world’s sole supplier of the extreme ultraviolet machines needed to make advanced chips, but India is expected to focus initially on mature-node products.

Lam Research said it would expand a training initiative in India, partnering with 60 universities to train about 60,000 engineers over a decade, while Germany’s Merck Group said it would supply high-purity materials for chipmaking.

Both companies emphasized the importance of building local ecosystems alongside physical plants.

The government’s India Semiconductor Mission, launched in December 2021 with an incentive package of about ₹76,000 crore, has so far approved ten projects across six states with investments exceeding ₹1.6 trillion.

Vaishnaw said the program’s next phase will expand support to small and medium-sized suppliers and adjust incentive structures to address investor needs.

“India is today a beacon of stability and growth,” he said, contrasting India’s investment climate with geopolitical disruptions elsewhere.

Modi linked semiconductor development to broader macroeconomic performance.

India’s economy grew 7.8% in the June quarter, its fastest pace in five quarters, and the prime minister told the summit that global investors “trust India” as a destination for long-term projects.

Analysts noted that India’s strengths include a large domestic market, engineering talent and government subsidies, but challenges remain in building infrastructure, ensuring reliable power and water supply, and creating the specialized supplier networks that make fabs viable.

For now, Vikram-32 stands as a symbol of progress. Designed for space applications, it can handle floating-point operations, process data in 32-bit chunks and operate in extreme temperatures.

Isro said it intends to use the chip in satellites and launch vehicles, potentially reducing reliance on imports. The design effort, supported by public research and local fabrication, highlights India’s transition from consumer to contributor in semiconductors, officials said.

Meanwhile, some analysts have cautioned that building globally competitive fabs will take sustained effort. Several major chipmakers have yet to commit to greenfield investments in India, despite the government’s offers of subsidies.

Industry analysts expect India to focus on legacy and automotive-grade chips before moving toward more advanced logic nodes. Fouquet of ASML, while praising India as “an innovation powerhouse harnessing the potential of over a billion minds,” pointed to the scale and time required to create a full-stack ecosystem.