Semiconductor startups attract record investment on govt support

New Delhi: India’s semiconductor design ecosystem is gaining momentum, driven by strong government support and growing investor confidence.

Startups supported under the Ministry of Electronics and IT’s (MeitY) Design Linked Incentive (DLI) Scheme and Chips to Startup (C2S) Programme are now attracting record private investments.

Among the recent successes is Netrasemi, which secured Rs 107 crore in venture capital (VC) funding. The company is developing chips for smart vision, CCTV cameras, and Internet of Things (IoT) applications.

Union IT Minister Ashwini Vaishnaw lauded the development, stating that India’s design capabilities are growing and Netrasemi’s progress will inspire more startups. Since the DLI Scheme’s launch in 2022, the government has committed Rs 234 crore to chip design projects by 22 startups, with a total project outlay of Rs 690 crore. These projects cover applications in surveillance, telecom, space, automotive, and smart devices.

The supported startups have collectively raised over Rs 380 crore from VC firms. Notably, Mindgrove Technologies raised Rs 85 crore for CCTV chip design, while Fermionic Design secured Rs 50 crore for satellite communication chips. Startups like Morphing Machines, InCore Semiconductors, and BigEndian Semiconductors are progressing toward production. Over 72 firms have also received access to advanced chip design software tools. The government’s push to position India as a ‘product nation’ is now being reinforced by robust private investment in indigenous chip innovation.