India has launched an ambitious initiative to develop its own 2-nanometre (2nm) graphics processing unit (GPU) by 2030, aiming to match the technological prowess of global leader Nvidia and reduce the country's dependence on foreign semiconductor technology for critical artificial intelligence (AI) infrastructure.

The project is spearheaded by the Centre for Development of Advanced Computing (C-DAC) in Bangalore, which has received $200 million in funding to drive the effort.

This move is strategically significant, as it addresses India's vulnerability to supply chain disruptions and potential export restrictions on advanced chips—a concern highlighted during recent geopolitical tensions that saw executive orders limiting access to high-end semiconductors. Currently, India boasts considerable expertise in chip design but lacks domestic patents for GPUs, making it reliant on US-based companies for the hardware that powers AI and high-performance computing applications.

According to senior officials involved in the project, India's goal is to have a prototype of the indigenous GPU ready for demonstration by late 2025, with full-scale production targeted for 2029. The timeline is designed to align with the global industry roadmap, as 2nm chips are expected to become the mainstream standard for data centres and AI training workloads by 2030—precisely when Nvidia and other industry leaders are projected to have their own 2nm offerings in widespread use.

A notable aspect of the initiative is its focus on cost competitiveness. Government projections suggest that the Indian-developed GPU could be priced at nearly 50 percent below current Nvidia rates, potentially offering a significant advantage in cost-sensitive markets and expanding access to advanced AI computing for start-ups, researchers, and academic institutions. To further support adoption, the government is offering substantial discounts—up to 40 percent—for these groups, with additional incentives for long-term contracts.

Despite the ambitious scope, India currently lacks the domestic fabrication capacity to manufacture 2nm chips. As a result, C-DAC plans to partner with Taiwan Semiconductor Manufacturing Company (TSMC) for mass production after the design phase is complete. This collaboration is seen as a pragmatic step to bridge the gap while India continues to invest in building its own advanced semiconductor manufacturing ecosystem.

The 2nm GPU project is a cornerstone of India's broader strategy to achieve "sovereign silicon"—the ability to design, develop, and eventually manufacture critical computing hardware domestically. It is expected to serve as a foundation for a self-reliant AI ecosystem, reduce exposure to external supply chain shocks, and position India as a competitive player in the global semiconductor and AI markets by the end of the decade.

Based On Mint Report