India’s decision to ease foreign direct investment (FDI) restrictions for neighboring countries marks a calibrated shift in policy that could reshape its electronics and semiconductor supply chains, even as geopolitical sensitivities remain intact.

Nvidia CEO Jensen Huang highlighted at GTC 2026 that AI has shifted from early model training to an era defined by inference and agent computing. To meet growing inference demands, Nvidia integrated its strategic acquisition of Groq and launched the Groq 3 LPU Rack as a token accelerator designed for ultra-low latency inference tasks, with Huang announcing that the LPU chip is manufactured by Samsung Electronics.

Recent reports indicate that the Trump administration planned to tighten export controls on AI chips to China but has since withdrawn new proposals. While these regulatory pressures make it difficult for US-based AI chipmakers like Nvidia and Advanced Micro Devices (AMD), China’s AI GPU market is not standing still waiting for Washington’s approval.