Nvidia CEO Jensen Huang’s recent meeting with India’s Prime Minister Narendra Modi suggests the possibility of India becoming a major player in chip manufacturing. The meeting took place on Monday evening, ahead of the Group of 20 summit scheduled for September 9-10 in Delhi.
During their discussion, Modi highlighted the vast potential India holds in the field of artificial intelligence (AI). While India already has a significant number of developers utilizing Nvidia technology, the country aims to establish itself as an alternative to Taiwan for advanced semiconductor manufacturing, particularly given China’s increasing claims over the self-ruled island.
Currently, India has a long way to go before it can truly compete with Taiwan in this regard. The largest chip-manufacturing project proposed in India was a collaboration between Taiwan’s Foxconn Technology and Indian resources conglomerate Vedanta, with an investment of nearly $20 billion. However, this partnership was terminated in July due to a lack of experience in the field.
Nevertheless, this setback could pave the way for other opportunities. India’s ultimate goal would be to attract Taiwan Semiconductor Manufacturing (TSM), the world’s largest contract chip maker and Nvidia’s main semiconductor manufacturer. TSM is currently expanding its facilities outside of Taiwan and reportedly engaged in discussions with Foxconn regarding a potential joint venture, as reported by Indian newspaper The Economic Times in July.
Although neither Nvidia nor Modi mentioned specific chip-plant investments in their statements following the meeting, it is highly likely that it was a topic of discussion. Modi has been determined to enhance India’s high-tech manufacturing sector and chip manufacturing presents a valuable opportunity in the global market.
India’s ambitions to emerge as a major player in chip manufacturing are worth keeping an eye on as Nvidia CEO Jensen Huang continues to explore potential collaborations and investments in the country.
