India has been advised to create a coordinated national strategy to facilitate the deployment of large-scale AI infrastructure, according to a recent report. The report, by Applied Materials and AMCHAM India, emphasizes the need for a robust power system, a competitive semiconductor market, and a reliable computing supply chain. It suggests three key pillars: a resilient electricity grid for AI workloads, an energy-efficient computing supply chain, and the development of globally competitive semiconductor markets.
The proposed computing supply chain should encompass everything from algorithms and system design to semiconductor equipment and materials. Additionally, the establishment of competitive markets is seen as crucial for translating infrastructure capabilities into sustainable economic growth. India is recognized for its structural advantages, including a vast engineering talent pool, a digital economy with over one billion users, and supportive policies for AI and semiconductors.
While India has made progress in AI and semiconductor sectors, the report highlights that physical infrastructure remains a limiting factor. Advanced computing tasks necessitate a steady and substantial supply of electricity. The report stresses the importance of the electricity grid, noting that non-fossil sources account for more than half of the installed capacity in India. Ranjana Khanna, Director General CEO of AMCHAM India, emphasized the significance of addressing this constraint to fulfill India’s AI aspirations.
The report underscores the interconnected nature of AI infrastructure, emphasizing that semiconductor design, compute deployment, research, and power generation are interdependent. It asserts that weaknesses in any layer can hinder the entire system, while strength across all layers enables scalability, efficiency, and resilience. The report also calls for enhancing India’s planned fabrication capacity, backed by investments under the India Semiconductor Mission, with a focus on acquiring deeper expertise in equipment and materials.
