India plans to develop domestic GPUs within the next two years as part of a broader strategy to build a national hardware and software ecosystem. The government is also working to commercialize its indigenous SHAKTI and VEGA processors, which are based on the open-source RISC-V architecture.
The country is expanding its semiconductor manufacturing capabilities through partnerships. Tata Electronics is collaborating with ASML to build a fabrication facility in Dholera, Gujarat, targeting a capacity of 50,000 wafers per month. Additionally, Intel has entered a strategic partnership with Tata Group for local manufacturing and packaging.
The government supports hardware development through the Design-linked Incentive program, which has provided assistance to 24 companies. These firms have subsequently secured venture capital or private investment for projects ranging from drone flight controllers to smart meter chips.
The Indian semiconductor market is valued at approximately $50 billion and is projected to reach $100 billion by 2030. Officials view the current AI boom as a significant economic opportunity, potentially mirroring the growth experienced by the IT sector during the Y2K transition.
