India, the new Silicon Valley? Investor Masayoshi Son plans to make the country a global chip hub, leveraging partnerships with Arm Holdings to create 1 million chip designers.
Masayoshi Son, the founder of SoftBank Group, has outlined plans to position India as the global leader in semiconductor production in light of artificial intelligence (AI) transforming the technology sector, according to a report by the Economic Times. During a recent visit to India, Son also met with Prime Minister Narendra Modi.
As part of his vision, Son is reportedly seeking to collaborate with Arm Holdings, a British semiconductor design company in which SoftBank holds a 90% stake. The goal is to support the creation of 1 million chip designers in India through partnerships with universities and educational institutions.
Arm Holdings recently went public in a record-breaking initial public offering, raising $4.87 billion. Its current market value stands at $140 billion.
According to ET, Son is confident that India has the potential to become the new ‘Silicon Valley’, especially due to its emerging capabilities in chip design. This shift represents a move away from the country’s traditional focus on software services and coding expertise.
India already has the scheme India Semiconductor Mission (ISM) to strengthen the country’s semiconductor manufacturing and design capabilities. In its second phase, a budget allocation of $10 billion is expected.
During his India visit, Son met with notable figures, including Mukesh Ambani, the chairman of Reliance Industries, to discuss AI opportunities.
Son has also shared his thoughts on AI with Indian entrepreneurs, urging them to adopt a non-linear approach to AI development and plan for the next decade. He expects capital expenditure in AI infrastructure to range between $9 trillion and $12 trillion.
SoftBank has been a major investor in India’s startup ecosystem, contributing $11 billion through its Vision Funds over the last decade. The company reported a nearly $8 billion profit for Q3 2024, largely driven by successful IPOs from Indian portfolio companies such as FirstCry and Ola Electric.
