Present electric grids are advanced to integrate smart grids, distributed resources, high-speed sensingand control, and other advanced metering technologies. Cybersecurity is one of the challenges of thesmart grid and nuclear plant digital system. It affects the advanced metering infrastructure (AMI), forgrid data communication and controls the information in real-time. The research article is emphasizedsolving the nuclear and smart grid hardware security issues with the integration of field programmablegate array (FPGA), and implementing the latest Time Authenticated Cryptographic Identity Transmission(TACIT) cryptographic algorithm in the chip. The cryptographic-based encryption and decryptionapproach can be used for a smart grid distribution system embedding with FPGA hardware. The chipdesign is carried in Xilinx ISE 14.7 and synthesized on Virtex-5 FPGA hardware. The state of the art ofwork is that the algorithm is implemented on FPGA hardware that provides the scalable design withdifferent key sizes, and its integration enhances the grid hardware security and switching. It has beenreported by similar state-of-the-art approaches, that the algorithm was limited in software, not implemented in a hardware chip. The main finding of the research work is that the design predicts the utilization of hardware parameters such as slices, LUTs, flip-flops, memory, input/output blocks, and timinginformation for Virtex-5 FPGA synthesis before the chip fabrication. The information is extracted for 8-bitto 128-bit key and grid data with initial parameters. TACIT security chip supports 400 MHz frequency for128-bit key. The research work is an effort to provide the solution for the industries working towardsembedded hardware security for the smart grid, power plants, and nuclear applications.