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India is developing a 2nm indigenous GPU at C-DAC Bengaluru to boost AI and high-performance computing.

The government has allocated $200 million, aiming for a prototype by 2025 and full-scale production by 2029.

Due to limited domestic fabrication, C-DAC will partner with TSMC for manufacturing.

The GPU is expected to be 50% cheaper than Nvidia's, making it accessible to startups, researchers, and academic institutions.

To encourage adoption, the government offers up to 40% discounts for research institutions. This initiative is part of India's "sovereign silicon" strategy to achieve self-reliance in semiconductor technology and strengthen its AI ecosystem.

If successful, it will position India as a key player in global high-performance computing by 2030.

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AMD is in talks with India to support indigenous GPU development, aligning with India's Semiconductor Mission. The Centre for Development of Advanced Computing (C-DAC) is leading efforts, aiming for a prototype by year-end and commercial readiness by 2030.

India may open its Design-Linked Incentive (DLI) scheme to global firms, and AMD is considering participation. The company’s $400 million investment supports local startups, engineering talent, and indigenous IP.

India also engaged with NVIDIA for GPU co-development, with IT Minister Ashwini Vaishnaw projecting a high-end chipset in 3–5 years. The government eased SEZ regulations to boost semiconductor production.