IESA plans to incubate at least 20 early stage fabless startups in the next three years and take this number to 50 in the next five years.
The India Electronics and Semiconductor Association (IESA) has launched the Fabless Centre of Excellence – the Semiconductor Fabless Accelerator Lab (SFAL) to incubate early-stage startups and existing SMEs in this segment.
SFAL will provide access to funds, market and mentors for these young companies and plans to incubate at least 20 early stage fabless start-ups in the next three years. In the next five years, it expects to take this number to 50.
Through the SFAL, the IESA expects to generate more employment in the electronic system design and manufacturing (ESDM) sector, encourage the creation of more domestic IP and serve as a catalyst to accelerate the fabless startup ecosystem.
SFAL is also expecting that this initiative would enable the design of semiconductor chips for local markets in products like energy meters, LED lighting, smartcards, rural broadband and IoT solutions. It has projected a job creation of about 800 skilled engineers and more in the allied areas.
K J George, Minister for Large and Medium Scale Industries, IT, BT and S&T, Government of Karnataka, said,
“Our vision is to make Karnataka the hub around which the next breed of Indian fabless startups can thrive and accentuate the existing fabless companies into the next realm of growth. Along with IESA, we are certain to propel the ESDM sector and support innovative domestic companies.”
According to an IESA report, the Indian semiconductor component market is estimated to touch $32.35 billion by 2025 growing at a CAGR of 10.1 percent from 2018 to 2025.
Rajesh Ram Mishra, President of IESA, said, “SFAL fills a critical gap in our ESDM ecosystem that will prepare us as a country to capitalise on the mega trends unleashed by intelligent electronics.”