India’s semiconductor sector is going through a major transformation, driven by record investment and robust support from the Government of India. With the rising demand for high-performance chips across all industries, India’s semiconductor startups are gaining global attention. These startups have benefited from government-backed schemes such as the Design Linked Incentive (DLI) scheme and the Chips to Startup (C2S) programme, which are pushing the nation towards becoming a global semiconductor center.

Government Initiatives Fuelling Growth

The Ministry of Electronics and Information Technology (MeitY) has driven the growth of India’s semiconductor ecosystem with schemes such as Design Linked Incentive (DLI) and Chips to Startup (C2S) programme. Launched in 2022, the DLI scheme supports domestic chip design, while C2S is focused on scaling evolving companies. Through these measures, the government has committed ₹ 234 crore (US$ 27.08 million) to fund 22 chip design projects, totalling ₹690 crore (US$ 79.86 million). This funding helps startups in various fields including CCTV, mobile networks and satellite communications.

Record Venture Capital Investment in Semiconductor Startups

India’s semiconductor startups have elevated significant venture capital (VC) funding, accelerating their chip design and development efforts. One such startup, Netrasemi, received ₹107 crore (US$12.38 million) for its work on smart vision, CCTV, and IoT chips. Union Minister for Electronics and IT Shri Ashwini Vaishnav welcomed the development, noting that initiatives like the India Semiconductor Mission will help India enhance its design capabilities. With growing support and investment, Indian startups are well-positioned to become global players in semiconductor design.

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Notable Investments in Indian Semiconductor Startups

Many semiconductor startups in India are making significant strides, because of the government backing and private investments. Notable examples are:

• Mindgrove Technologies: Focused on CCTV chip design, Mindgrove Technologies raised ₹85 crore (US$ 9.83 million) to improve its capabilities in designing next-gen surveillance chips.
• Fermionic Design: Specializing in satellite communication chips, Fermionic Design secured ₹50 crore (US$ 5.79 million) in funding to scale its operations and further develop satellite chips for the global market.
• Morphing Machines, InCore Semiconductors, and BigEndian Semiconductors: These startups are progressing quickly toward the production stage, representing India’s strong presence in the semiconductor design and manufacturing space.

More than 72 companies have gained access to advanced software tools that are crucial for designing chips, permitting startups to compete globally. Moreover, five startups are already in the process of building and testing their designs in collaboration with global manufacturers, marking a significant step towards India’s self-reliance in semiconductor technology.

A Bright Future for Semiconductor Startups in India

India's rising focus on innovation and its ambition to become a 'product nation' is encouraging startups to step forward in semiconductor design. Government schemes and private investment have enabled startups to expand their operations and develop cutting-edge technologies. As demand for 5G, AI, and electric vehicles raises, India’s semiconductor ecosystem is poised to expand rapidly, offering substantial opportunities for startups to lead in global chip development.

Conclusion

India is swiftly moving towards becoming a global leader in semiconductor design and manufacturing thanks to government initiatives, private investment and a thriving startup ecosystem. The success of startups such as Netrasemi, Mindgrove Technologies, and Fermionic Design highlights the country’s growing capabilities in producing advanced semiconductor technologies. With continued support from venture capital and government schemes, India is poised to play a primary role in shaping the future of the global semiconductor market.