India Aims to Develop Homegrown GPU Within Two Years, Commercialize SHAKTI and VEGA Processors

Indigenous GPU Development Target

S. Krishnan, secretary of India's Ministry of Electronics and Information Technology (MeitY), stated India's intention to develop its own graphics processing unit (GPU) within the next two years. This goal is part of the broader India Semiconductor Mission 2.0, which seeks to foster a domestic semiconductor industry. The project is estimated to take approximately 24 months.

Building a Domestic AI Ecosystem

The proposed GPU is a component of a larger strategy to establish an Indian hardware and software ecosystem. Krishnan outlined five essential layers for AI development: energy, accelerator chips, computing infrastructure and servers, AI models, and applications. Indian companies like VVDN, Kaynes, and Avalon are already producing servers, and the Centre for Development of Advanced Computing (C-DAC) has developed its Rudra server range for AI workloads, with technology transfer to local manufacturers.

AI as an Economic Opportunity

Krishnan compared the potential impact of AI on India's IT industry to the Y2K transition, which significantly boosted the sector. While a NITI Aayog paper suggests AI adoption could make two million existing jobs redundant, it also estimates the creation of around four million new jobs. Indian companies are positioned to assist global businesses with AI integration, similar to their role in software services during the Y2K era.

Semiconductor Manufacturing Progress

India has attracted international interest in its semiconductor ambitions. ASML has partnered with Tata Electronics for India's first commercial semiconductor fabrication facility in Dholera, Gujarat, which is expected to use 300mm wafers and reach a capacity of 50,000 wafers per month. Intel has also formed a strategic partnership with Tata Group for semiconductor manufacturing and packaging within the Indian market. The indigenous GPU project is currently in its early stages.