When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works .
The proposed GPU is part of a wider plan to establish an Indian hardware and software ecosystem, with Krishnan describing five layers needed to support AI development. These include: energy, accelerator chips, computing infrastructure and servers, AI models and applications. Indian companies such as VVDN , Kaynes and Avalon are already manufacturing servers, while the Centre for Development of Advanced Computing (C-DAC) has developed its Rudra server range, whose systems are designed to support AI workloads, after which the government transfers the technology to local manufacturers. Krishnan also sees AI as a potential repeat of the opportunity India's IT industry experienced during the Y2K (the year 2000 bug) transition. "AI could create a similar opportunity, although the nature of the work will be different," he said.
The comparison is big for a country whose IT-enabled service sector employs about 6 million people. A NITI Aayog paper estimates that roughly two million existing jobs could become redundant as AI adoption changes the industry, but around 4 million more jobs could emerge. Krishnan argues that Indian companies could benefit from helping businesses worldwide integrate into their AI operations, just as they benefited from the demand for software services around the turn of the century.
That said, it is not the first time India has attempted to build its own GPU production unit. In 2019, India's IT Madras released a software development kit that allowed developers to begin building applications before the processors were commercialized. The project included several processor classes aimed at different markets, from embedded devices and micro-controllers to workstations and server workloads. The effort has continued since then, with the Aries 3.0 development board, which uses the C-DAC’s VEGA ET301 processor, being introduced in 2024. The 32-bit chip runs up to 100MHz and includes 26KB of SRAM and is intended for relatively simple applications such as sensors, wearables, and Internet of Things devices, rather than desktop PCs or graphics-intensive workloads.
‘This is how AI should be used’ — OpenAI head of hardware breaks down the AI-assisted design of its Jalapeño ASIC
However, there are signs that the SHAKTI and VEGA platforms are nodding beyond development boards and into practical applications. At the September 26 SEMICOM India event , the government highlighted projects using the processors, including an autonomous water-cleaning robot around SHAKTI and a digital telescope using VEGA. Another VEGA-based project was designed to monitor forest environments. The government's Design -linked Incentive (DLI) program is already supporting more of that work. MeiyT says 24 companies received assistance under the scheme, and subsequently raised venture capital or other private investment. Their projects include microcontrollers, drone flight controllers, smart meter chips and CCTV cameras.
India's semiconductor market is currently valued at just about $50billion and is expected to approach 100 billion by 2030, according to a report by the India Electronics and Semiconductor Association (IESA). The government wants local companies to capture more of that growth domestically rather than remain dependent on imported components.
Get Tom's Hardware's best news and in-depth reviews, straight to your inbox.
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/semiconductors/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/semiconductors/india-targets-creating-homegrown-gpus-within-2-years-and-plans-to-commercialize-indigenous-shakti-and-vega-risc-v-processors-sees-ai-boom-as-a-potential-repeat-of-the-y2k-opportunity-for-its-it-industry#main
- https://www.tomshardware.com/membership
- AI data centers comprehensively defeated at US midterm elections
- Thermal Grizzly launches PhaseSheet PTM Pro with improved thermal conductivity
- US intelligence believes Jensen Huang had affair with Chinese spy in honeypot operation
- AI data centers comprehensively defeated at US midterm elections
- Marvell to buy Lumentum in $115 billion all-stock deal
Informational only. No financial advice. Do your own research.