In an exclusive conversation with CNBC-TV18, the Padma Bhushan awardee stated, “Just as India successfully built its own nuclear bomb, we must learn to manufacture our own GPUs.” He emphasized that AI has turned into a modern arms race, where the hardware is as crucial as uranium.
Dham highlighted that discussions around AI in India often focus primarily on software and algorithms, but “AI relies heavily on the essential chips.” He noted that while numerous engineers concentrate on the AI stack, they frequently overlook the critical requirement for the semiconductors that enable it all.
Characterizing AI as both a military and economic arms race, Dham indicated that advanced chips like GPUs provide countries with advantages in autonomous weapons, drones, and missile systems. “That’s the GPU. The chip serves as the fuel—the uranium—that’s difficult to acquire and every nation seeks to retain for itself,” he articulated.
While he recognized that India’s semiconductor mission commenced with vigor, he confessed that the momentum has diminished. “I feel like we are not pursuing it as aggressively as we initially were—perhaps because the excitement has faded,” he remarked.
He disclosed that India is now crafting a new strategy—India Semiconductor Mission 2.0—which intends to build upon the successes and rectify the shortcomings of its predecessor. “We’ll likely allocate even greater funds,” he mentioned, alluding to the original $30 billion investment from the first phase.
Dham advised against an immediate pursuit of cutting-edge technologies. Instead, he recommended commencing with mature nodes like 65nm, 40nm, and 20nm. “Many products can be developed from those,” he stated, adding that packaging capabilities need to be cultivated simultaneously alongside fabrication.
Regarding global collaborations, Dham remarked that cooperation with the US is vital but complex. The US retains a dominant position in equipment and GPU intellectual property, rendering it both a crucial ally and a gatekeeper. “We would require approval from America, as they are the leading nation in this race and control a significant part of the semiconductor arena—even if most chips are produced outside the US,” he explained.
He also noted that while military AI technologies may remain tightly regulated, the economic advantages of AI should be shared more openly with trusted allies like India. However, he cautioned, “Given the current operations of the US government, what holds true today might change with a single tweet tomorrow.”
Below is an excerpt from the interview.
Q: What was your experience like at Rashtrapati Bhavan receiving the Padma Bhushan?
Dham: I experienced goosebumps—twice. Once when the President of India entered the Durbar Hall, while we were seated and they played the drums briefly, followed by our national anthem—its impact is profound. Growing up in India, many of us have heard and sung it since the second grade. Now, being in the US, we don’t usually sing it. But returning and hearing it plays rekindles a flood of emotions.
It’s a magnificent structure. I hesitate to simply call it a building—I’m not sure what word fits better. The interiors are vast, and the entire event was conducted with great ceremony. The President had a contingent of elegantly dressed Army and Air Force personnel standing behind her. Of course, Prime Minister Modi and the Home Minister were present.
I should mention, this occurred one or two days following the unfortunate event in Kashmir—possibly the same day. Just as I was set to board my flight from San Francisco—my limo was on its way to pick me up, and my wife and I were headed to the ceremony—she asked, “What if they cancel it?” I replied, “There’s a possibility.” Thankfully, I contacted someone in the Home Ministry, who assured me, “Please take the flight. There’s no way it will be cancelled.”
Even during my conversation with Prime Minister Modi that evening—Padma Bhushan awardees receive additional time with him following the photography session—I was watching for any signs of stress, concern, or urgency. There were none. He dedicated ample time to each of us. We were in Ashoka Hall for photographs, and there was an area where our guests—including my wife and brother—were waiting with refreshments. They informed me that PM Modi made it a point to walk the entire hallway to greet all the guests, which was truly impressive.
So, I have a strong admiration for him. For those who may not share that sentiment, I apologize. I genuinely wish for his longevity and hope he guides us back on the right path. Our nation has faced many detours for an extended period. At times it seemed we were regaining footing, only to falter again. We need someone to maintain consistency, ensuring we stay the course regardless of future circumstances.
Q: Reflecting on your remarkable journey—from arriving in the US with just $8 in your pocket to receiving the Padma Bhushan. Did you envision such a future?
Dham: No, I didn’t. I must admit, the reason I arrived with $8 was due to my own oversight—not because I was short on funds or unable to exchange more.
Back in the ’70s, the process was quite typical—you’d apply to various campuses, and once you chose where to go, that was it. I selected the University of Cincinnati for their semiconductor lab, which had more advanced equipment than the semiconductor company I worked for in India.
The experience offered opportunities to transition from simply cutting a ruby—which is akin to creating a mask—to fabricating the entire wafer in the lab, packaging it, and then testing it. It felt unbelievable. That’s why I chose them. They had communicated with me for a year and a half, and I recalled that I secured a full tuition scholarship along with an assistantship of $325 a month. So, I assured my mom, “I don’t need extra funds. Just enough for transport from here to there.” The Government of India could only provide $8 at that time.
While I could have leveraged contacts for more funds, I felt no need to do so. Upon my arrival in the US, I met with the foreign student advisor, Mrs. Mary Campbell. Like many young individuals in their early 20s, after corresponding for a year and a half, I had imagined what she would look like and how she would be. My expectations were high for this meeting.
She turned out to be a delightful, petite lady from South Carolina with a lovely Southern accent. I entered with my Indian accent; you can only imagine how wonderful this country is, where they embrace diverse accents. I sat down, and she inquired, “How was your flight? How was your journey?” I responded that everything was fine. Then she anticipated me to stand as other students were waiting. However, she looked at me and asked, “Is something wrong?” I replied, “Yes, ma’am.” She responded, “What is it?”
I explained that I had just arrived the previous day and discovered that the accommodation would cost me $90—for a shared room—and health insurance was $10 monthly. That amounted to $100 already. I had anticipated needing a bit more for food. So, she kindly offered me $125—retrieving six $20 bills and a $5 bill from another room—$125 in cash and mentioned, “Repay it at $25 per month once you start earning.” She informed me it was from the petty cash fund. I didn’t know what that meant, but I was grateful. I now had enough to enjoy hamburgers for lunch and dinner, so I was content.
Q: Let’s discuss the current AI race. You’ve been in India engaging with the government about the semiconductor mission. Are we on the fast track now, or still lagging behind?
Dham: We launched our semiconductor initiative with great enthusiasm. The idea and recommendation I offered—and they embraced—was that we need a semiconductor fabrication facility. We needn’t start with cutting-edge 2nm processes. Let’s begin with 65, 40, and 20, and if we can reach 14, that’d be considerable. Numerous products can be constructed using those technologies. We should also establish packaging capabilities.
To this end, there are currently six different programs underway at various stages. Yet, in my view, we still need to accelerate further. I sense that our pace isn’t as vigorous as it was at the start—perhaps because the initial excitement has diminished. I might need to return and advocate more strongly.
Q: What aspects do you wish to push for more vigorously?
Dham: The current fund had an initial allocation of $30 billion. I believe a significant portion has been utilized, but there’s much more to accomplish. We’re in the process of establishing ISM 2.0—India Semiconductor Mission 2.0—where we intend to adjust our approach based on insights from the past, enhancing what works and fixing what doesn’t. We’ll likely allocate even more resources.
AI is especially significant to me. I perceive AI as a part of deep tech. Many engineers here are software-focused, and when discussing AI, they tend to concentrate only on the software layer—algorithms, applications, and such. They forget that AI cannot thrive without the foundational chips.
I helped create the Pentium, 486, and 386—now introduced as Blackwell and Hopper, among others. The fundamental principle hasn’t changed much; just the timelines have shifted. That hardware is critical for India’s success in the AI race. Currently, we don’t manufacture those GPUs ourselves. I would love to see India design its own GPUs. Personally, I am quite invested in ensuring we possess the ability and resources. AI has indeed become a competition.
Q: You draw a parallel to a nuclear arms race.
Dham: Precisely. The chip functions as the fuel—the uranium—that is challenging to secure and every nation strives to control. That’s the GPU.
Similar to how India successfully developed its nuclear capabilities, we must determine how to produce our own GPUs. We will require assistance from the US. Designing a GPU poses one challenge; fabrication presents another, necessitating advanced tools. Additionally, we’ll need permission from America, as they are at the forefront of this domain and hold a substantial share of the semiconductor industry—even if most chips are fabricated elsewhere.
Many people don’t realize it, but the US continues to wield influence—not only in equipment but also in GPU intellectual property. That’s why they are exerting pressure on China concerning export regulations.
Q: Geopolitics will undeniably influence decisions in this arena—whether concerning semiconductors or AI. You mentioned US-China tensions and export restrictions. Now we have the rare magnet issue, with China asserting itself again. Given the current geopolitical climate, do you view deeper collaboration between nations like India and the US as a feasible way forward? Or are we likely to encounter more obstacles in such alliances?
Dham: The AI arms race comprises two components: one being the military dimension. With AI, we’re looking at advanced weaponry, drones, and autonomous anti-missile systems, all of which provide military advantages to nations.
In this regard, I don’t anticipate the US will readily share advanced technology. They will exercise caution in deciding with whom to collaborate—justifiably so.
The other aspect is economic. AI is set to fundamentally transform our lives, work, and social dynamics. We are beginning to witness that transformation already. Hence, I believe the global community should reap the benefits stemming from this side of AI. Restrictions ought to be minimal. There should be a greater degree of open exchange, particularly with trusted partners like India.
However, under the current functioning of the US government, today’s circumstances could flip with a tweet tomorrow.
Q: Or even later tonight.
Dham: Precisely—who can say?
Watch the accompanying video for the complete conversation.
