Generative AI is a bigger revolution than the internet, says chairman of Walden International

In an interview with CNBC-TV18, Lip-Bu Tan, Chairman of Walden International, shared his insights into the rapidly evolving landscape of generative AI and the semiconductor industry.Tan firmly believes that generative AI is not just a passing trend but a revolutionary force that will have a more significant impact than the internet.

“In my personal opinion, generative AI is bigger than the impact of the internet. And it is also driving a lot of growth in semiconductors.”

Tan drew parallels between the current generative AI boom and the early days of the internet. He noted that while the internet experienced a bubble that saw many companies collapse, it also led to the emergence of major platforms like Amazon and Netflix. Similarly, he predicts that the surge in investments in generative AI will see some companies fail and others being acquired, but ultimately, “there may be three or five big platforms that will come out from here.”Looking ahead, Tan envisions a significant shift in the role of Indian talent in the global tech landscape. He advocates for a transition from design, service, and outsourcing roles to the creation of proprietary products and brands that can compete on the world stage.

“In terms of opportunity, in the next 10-15 years, what I would like to see is that some of this Indian talent, instead of just doing design, service, and outsourcing, they have their own product, their own brand, and then really become a world-class player. So I think my advice to some of the Indian entrepreneurs would be, be bold, think big and then make it happen.”

The semiconductor industry, according to Tan, is poised for tremendous growth, driven in large part by advancements in AI and generative AI.

“People are predicting a $1 trillion industry by 2030,” he said. He commended the Indian government for recognising the critical importance of the semiconductor industry, noting that it is essential for the development of various applications.

“I’m very delighted that the Indian government recognised the importance of the semiconductor and how it’s important to help the country and the industry to play a bigger role.”

To sustain this growth, Tan emphasised the need to build robust design capabilities and a vibrant fabless design sector. “Going forward, next step is to build the design capability and a more fabless design to support the industry growth. Fab is very capital intensive, and so in some way, you need not only the foreign customers, but you also need the local fabless design to be vibrant.”

Amidst rising US-China tensions, Tan sees a unique opportunity for India to emerge as a significant player in the semiconductor industry.

“India has a very unique opportunity to become the next big growth area. The one thing that India is very good at is having very strong software talent. In semiconductors, you need to have the full stack, not just the semiconductors alone—you need to have software and the application and the system know-how.”

Watch the video for more