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India: GPU Cluster Empowers AI Start-ups

Image credit: IndiaAI
Image credit: IndiaAI

In a bid to support startups struggling to train AI models in the country, the government plans to establish a major graphics processing unit (GPU) cluster. The move will also encourage investments in the field of chip design for AI applications, enhance domestic intellectual property, and improve the country’s global standing in the AI and semiconductor industries.

A GPU cluster is a network of computers with GPUs on each node to train neural networks for image and video processing. According to the Minister of State for Electronics and Information Technology, Rajeev Chandrasekar, the GPU will be set up under the India AI programme. The government will help startups and foreign enterprises interested in developing domestic intellectual property in chip design for AI applications through the IN₹ 11 billion (US$ 132 million) – IN₹ 12 billion (US$ 144 million) design-liked incentive systems.

Chandrasekar noted that presently, most conversations about AI revolve around applications such as ChatGPT. However, the project’s main aim is to develop practical AI applications for the real world. The emphasis will be on developing AI-specific integrated circuits for real-use cases in healthcare, governance, and education.

Alongside this announcement, the Minister mentioned that construction for a semiconductor packaging and assembly plant has been started by a leading American semiconductor manufacturing company in Sanand, Gujarat. The project has a total investment of US$ 2.75 billion. The project will receive significant support, including 50% fiscal backing from the central government, along with additional incentives representing 20% of the overall project cost from the state of Gujarat. The facility will encompass 500,000 square feet of cleanroom space and will commence operations in late 2024.

Following Prime Minister Narendra Modi’s unveiling of the semiconductor vision and the intended investment of IN₹ 760 billion to stimulate and develop India’s semiconductor ecosystem, significant advancements have been achieved in the past 18 months. The Sanand plant represents a significant milestone in India’s journey toward becoming a leading semiconductor industry.

The India Semiconductor Mission (ISM) is a distinct and autonomous Business Division operating within the Digital India Corporation. It aims to cultivate a dynamic semiconductor and display ecosystem, positioning India as a worldwide leader in electronics manufacturing and design. Spearheaded by international experts in the semiconductor and display sectors, ISM serves as a central hub for the effective and coordinated implementation of the Program for the Development of the Semiconductor and Display Ecosystem. This is achieved through close collaboration with government ministries, departments, agencies, industry partners, and academic institutions, ensuring a comprehensive and streamlined approach.

ISM is developing a comprehensive and long-term strategy to nurture sustainable semiconductor and display manufacturing facilities. It promotes the implementation of secure microelectronics and cultivates a reliable semiconductor supply chain, including raw materials, speciality chemicals, gases, and manufacturing equipment.

ISM will also provide essential support through Electronic Design Automation (EDA) tools, foundry services, and other suitable mechanisms for early-stage start-ups. It will enable cutting-edge research, including evolutionary and revolutionary technologies, through grants, global partnerships, and mechanisms involving academia, research institutions, and industry stakeholders. It actively promotes collaborative initiatives with national and international agencies, industries, and institutions. These efforts accelerate commercialisation and skill development, enabling the transfer of technologies (ToT) to foster innovation and growth.


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