India is poised to make significant strides in the semiconductor industry, with Union Minister Ashwini Vaishnaw announcing that the country will develop its own Graphics Processing Units (GPUs) within the next three to five years. This initiative is part of a broader strategy to enhance India's technological self-reliance and reduce dependence on foreign semiconductor technology. The announcement came during discussions at the World Economic Forum (WEF) 2025, where Vaishnaw emphasized the importance of establishing a robust semiconductor ecosystem in India.
The government's commitment to this initiative is underscored by its previous efforts under the Semicon India program, which aims to foster domestic chip manufacturing capabilities. By the end of 2025, India plans to launch its first "Made-in-India" semiconductor chips, with several fabrication facilities already under construction. These developments are expected to bolster the country's position in the global semiconductor market, which is crucial for powering various technologies, including artificial intelligence (AI).
In addition to developing GPUs, India has also approved a substantial budget for the IndiaAI Mission, allocating approximately $1.24 billion to enhance its AI infrastructure. This includes procuring over 10,000 GPUs through public-private partnerships to address the computing needs essential for developing a high-end AI ecosystem.
With these initiatives, India aims to position itself as a significant player in the global tech landscape, not only meeting domestic demands but also contributing to international markets. The combination of indigenous chip production and advanced AI capabilities could pave the way for India to emerge as a hub for technological innovation and manufacturing.
To achieve these objectives and guarantee that "Made-in-India" chips become popular in international markets, the government must take the initiative to consult with business executives and make research and development investments.