Nvidia CEO Jensen Huang is set to visit India later this week, where the GPU and AI chip design company reportedly plans to co-develop a chip, capitalizing on the country's abundant talent pool and vast market potential.
The Economic Times reported, citing unnamed officials, that Nvidia and India may collaborate on developing custom chips designed for Indian applications, including the security system for Indian Railways and defense purposes. The official added that Indian startups, companies, and the government could utilize the chip to support various applications that may arise if the government provides it under the AI mission.
The report stated that for the co-developed chip, the core design would be handled by Nvidia's partners, such as Arm, while the customization of the top 10-20% layer could be undertaken by the government-owned Centre for Development of Advanced Computing (C-DAC) or a private chip design firm in India. They noted that Nvidia's proposal aims to leverage the substantial number of chip designers available in India.
Ashwini Vaishnaw, the union minister for electronics and IT, confirmed the development to the Economic Times, stating, "Yes, we are in discussions with Nvidia regarding the development of an AI chip; these discussions are currently in the preliminary stage."
Parv Sharma, a senior analyst at Counterpoint Research, stated that India presents substantial growth opportunities in data centers and AI-based applications. He noted that Nvidia serves as a key enabler for AI, cloud, and data centers, already collaborating with Reliance Industries and the Tata Group on AI infrastructure. According to him, the development of a co-created chip would be a significant achievement, as it would provide silicon tailored for custom use cases in India.
Indian Prime Minister Narendra Modi met with Huang during Modi's three-day visit to the US at the end of September. After the meeting, Huang emphasized AI's role in democratizing computing and highlighted India's rising stature in the global tech arena. He praised Modi's keen interest in AI and recognized India's rich pool of computer science talent.
Huang added that Nvidia is committed to nurturing AI innovation in India through partnerships with educational institutions and AI Centers of Excellence. Huang sees this as a great opportunity for India to leverage its talent and expertise in AI.
While India has not been a traditional powerhouse in semiconductor design compared to regions like Silicon Valley or Taiwan, it has been making steady progress in recent years.
India has a large pool of skilled engineers and computer scientists, many of whom are well-versed in semiconductor design principles and tools. These engineers are often highly competitive and cost-effective compared to their counterparts in more developed economies.
A recent study by the Boston Consulting Group (BCG) reveals that 19% of the world's chip designers are located in India.
Besides, India has several R&D institutions, universities, and technology parks that are focused on semiconductor design and related technologies. These institutions provide a conducive environment for innovation and collaboration.
