In September 2025, the Indian government hailed a "momentous achievement" in the semiconductor sector at the Semicon India conference. During the event, IT Minister Ashwini Vaishnaw proudly unveiled the domestically crafted processor, the 'Vikram 3201,' to Prime Minister Modi. This innovative chip, a collaborative effort between the India Semiconductor Laboratories and the Indian Space Research Organization, has already proven its mettle in space missions.

However, it's worth noting that the Vikram 3201, which is built on a 180nm process and operates at a 100MHz clock speed, falls short in terms of specifications when compared to its global counterparts. This limitation poses a challenge in attracting potential buyers or demonstrating cutting-edge manufacturing prowess. Furthermore, neither Prime Minister Modi nor Minister Vaishnaw disclosed that the chip had already made its successful debut six months prior, nor did they highlight India's independent development of a processor based on the RISC-V architecture—a significant technological feat.

Minister Vaishnaw also pointed out that India's strategic policies have successfully lured several semiconductor giants. Among them, Powerchip Semiconductor's joint venture with India's Tata Group to establish a 12-inch wafer fabrication plant is slated to commence operations in 2026. This facility will mark India's entry into large-scale wafer manufacturing. Nevertheless, it's important to acknowledge that this plant, along with others currently under construction, primarily focuses on producing relatively basic silicon wafers. These wafers are a far cry from the high-margin, sophisticated products that power AI systems and servers, which are in high demand globally.