How is India’s chip design ecosystem thriving with VC funding?
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Synopsis
India's semiconductor design landscape is on the rise, with startups under government schemes attracting significant VC funding. This growth reflects the country's robust capabilities in chip design, promising a brighter future for tech innovation.
Key Takeaways
- India's semiconductor design ecosystem is rapidly expanding.
- Startups are gaining support from the DLI Scheme and C2S Programme.
- Netrasemi has raised Rs 107 crore in VC funding.
- Significant government funding is backing these initiatives.
- Over 72 businesses are now utilizing EDA tools.
New Delhi, July 24 (NationPress) India’s semiconductor design ecosystem is experiencing remarkable expansion, as startups nurtured by the Ministry of Electronics and IT’s (MeitY) Design Linked Incentive (DLI) Scheme and the Chips to Startup (C2S) Programme are gaining substantial momentum and securing private investments, as highlighted in an official statement released on Thursday.
The Bengaluru-based startup Netrasemi has successfully attracted Rs 107 crore in venture capital funding, marking a significant advancement for the industry.
Union Minister for Electronics and IT, Ashwini Vaishnaw, emphasized that India’s robust design capabilities are being showcased through the India Semiconductor Mission, and Netrasemi’s achievements are expected to motivate additional Indian startups to explore chip design.
Netrasemi specializes in developing semiconductors intended for Internet of Things (IoT) applications, CCTV cameras, and smart vision technologies, benefitting from the government's dedicated chip design initiatives.
The government has committed Rs 234 crore to assist 22 chip design startups out of a total project cost of Rs 690 crore since the inception of the DLI Scheme in 2022, according to the ministry's statement.
These startups are engaged in creating chips for diverse sectors, including satellites, smart devices, mobile networks, automobiles, and CCTV cameras.
Collectively, these startups have secured over Rs 380 crore from private investors in addition to government funding.
Fermionic Design, which focuses on chips for satellite communications, raised Rs 50 crore, while Mindgrove Technologies, specializing in CCTV chip design, raised Rs 85 crore.
Other industry startups are also rapidly advancing in production.
To date, five startups have developed and tested their chip designs in collaboration with manufacturers globally. Additionally, over 72 enterprises now have access to state-of-the-art Electronic Design Automation (EDA) tools to facilitate chip development, as per the ministry's report.
This burgeoning semiconductor design ecosystem is being cultivated through not only public funding but also the growing confidence of private investors, aligned with the government’s vision of transforming India into a “product nation”.
Point of View
I believe that India's semiconductor design ecosystem is on a promising path. With substantial government support and increasing private investment, the nation's ambition to emerge as a global technology hub is becoming a reality. The success of startups like Netrasemi showcases the potential of our innovative capabilities and should inspire confidence across the tech landscape.
NationPress
26/07/2025
Frequently Asked Questions
What is the significance of the DLI Scheme?
The DLI Scheme aims to enhance India's semiconductor design capabilities by providing financial support to startups, fostering innovation and attracting investments.
Which startups are leading in chip design?
Startups like Netrasemi, Fermionic Design, and Mindgrove Technologies are at the forefront, raising significant venture capital and developing advanced chip technologies.
How much funding has been raised in total?
Collectively, these semiconductor startups have raised over Rs 380 crore from private investors in addition to government assistance.
