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India is aiming to develop its own graphics processing units (GPUs) within the next two years as part of efforts to strengthen domestic semiconductor manufacturing and reduce dependence on imported technology. The government also plans to commercialise its indigenous SHAKTI and VEGA processors, expanding the country’s capabilities in artificial intelligence (AI) and chip development.
S. Krishnan, Secretary of the Ministry of Electronics and Information Technology (MeitY), said the proposed GPU development would be pursued under India Semiconductor Mission 2.0, with an estimated timeline of 24 months.
What Is India’s Plan for Homegrown GPUs?
The government wants to develop an indigenous GPU capable of supporting India’s growing computing and AI requirements. GPUs play an important role in AI processing and other computationally demanding applications.
Krishnan said the project would require approximately two years and acknowledged that developing such technology would take time.
However, the government has not yet identified a manufacturer, chip supplier or company responsible for developing the proposed GPU.
How Will India Build Its AI Infrastructure?
The government is pursuing a wider strategy to establish domestic hardware and software capabilities.
Krishnan identified five essential components of AI development: energy, accelerator chips, computing infrastructure and servers, AI models, and applications.
Indian companies including VVDN, Kaynes and Avalon are already manufacturing servers. Meanwhile, the Centre for Development of Advanced Computing (C-DAC) has developed its Rudra server range to support AI workloads.
The government intends to transfer the technology to local manufacturers to strengthen domestic production.
What Are SHAKTI and VEGA Processors?
Alongside GPU development, India is working to commercialise its indigenous SHAKTI and VEGA processors.
Both use the open-source RISC-V architecture, allowing developers to build processors without depending on proprietary CPU designs. These processors are different from the GPUs being targeted under the new initiative.
India previously introduced software development tools for these processors in 2019. In 2024, the VEGA-based Aries 3.0 development board was introduced. Its 32-bit processor operates at up to 100 MHz and includes 26 KB of SRAM.
The technology is intended for relatively simple applications, including sensors, wearables and Internet of Things devices.
How Is India’s Semiconductor Industry Expanding?
India has attracted major international partnerships to develop its semiconductor manufacturing capabilities.
ASML is partnering with Tata Electronics to equip the planned semiconductor fabrication facility in Dholera, Gujarat.
The facility is expected to use 300 mm wafers and eventually achieve a production capacity of 50,000 wafers monthly. Intel has also announced a strategic partnership with Tata Group covering semiconductor manufacturing and packaging.
Meanwhile, 24 companies have received assistance under the government’s Design Linked Incentive programme.
Supported projects include microcontrollers, drone flight controllers, smart meter chips and CCTV camera components.
Where Are Indigenous Chips Being Used?
India’s homegrown processor projects are gradually moving beyond research and development boards. Applications highlighted by the government include an autonomous water-cleaning robot using SHAKTI and a digital telescope based on VEGA.
Another VEGA-based project has been designed to monitor forest environments. These applications demonstrate emerging practical uses for domestically developed processors, although broader commercial adoption remains a separate objective.
What Could This Mean for India’s Technology Industry?
Krishnan compared the potential growth of artificial intelligence with the opportunities India’s IT industry experienced during the Y2K transition.India’s IT-enabled services sector currently employs approximately six million people. A NITI Aayog paper estimates that AI adoption could threaten around two million existing jobs while creating approximately four million new opportunities.
India’s semiconductor market is currently valued at about $50 billion and could approach $100 billion by 2030, according to industry estimates.
The government’s strategy aims to ensure that Indian companies participate more directly in this growth through domestic chip design, manufacturing and AI infrastructure development.
