Semiconductor Startups in India Attract Rs.380 Cr Funding Amid Govt Boost
India’s semiconductor startups are attracting unprecedented VC interest, thanks to strong support from MeitY’s DLI and C2S schemes and growing global demand for Indian-designed chips.
India’s semiconductor design ecosystem is witnessing a remarkable surge in investor interest, with startups attracting record-breaking funding fueled by robust government support and a growing global demand for homegrown chip solutions.
At the heart of this momentum are two flagship initiatives by the Ministry of Electronics and IT (MeitY)—the Design Linked Incentive (DLI) Scheme and the Chips to Startup (C2S) Programme. These programs have not only empowered domestic innovation but are now catalyzing significant private investment into India's semiconductor landscape.
Netrasemi Secures ₹107 Crore in VC Funding
Among the rising stars is Netrasemi, a chip design startup focused on smart vision, CCTV, and Internet of Things (IoT) applications. Backed by the DLI scheme, the company recently secured ₹107 crore in venture capital funding, marking one of the largest individual investments in the sector this year.
Union Minister for Electronics and IT, Shri Ashwini Vaishnaw, lauded the development, stating,
“India has significant design capabilities. With India Semiconductor Mission supporting ‘Design in India’, the success of Netrasemi will encourage other Indian startups.”
Government’s Bold ₹234 Crore Commitment Bears Fruit
Since the launch of the DLI scheme in 2022, the Indian government has committed ₹234 crore to support chip design projects from 22 startups, with a combined project cost of ₹690 crore. These chips are being designed for use in CCTV systems, mobile networks, satellites, automotive systems, and smart devices, showcasing the breadth of India's ambitions.
In addition to public funding, these startups have collectively raised over ₹380 crore from private investors, a strong validation of their potential and the government’s vision.
Startups Making Global Strides
Several Indian semiconductor startups are already making notable progress:
- Mindgrove Technologies, specializing in CCTV chip design, has raised ₹85 crore.
- Fermionic Design, focused on satellite communication chips, secured ₹50 crore.
- Morphing Machines, InCore Semiconductors, and BigEndian Semiconductors are rapidly advancing toward production stages.
Five startups under the DLI and C2S programs have already built and tested their chip designs with global manufacturers, signaling that India is not just designing chips, but also preparing to deploy them at a commercial scale.
Furthermore, 72+ companies have been granted access to advanced Electronic Design Automation (EDA) tools, enabling world-class chip design capabilities on Indian soil.
A Step Towards Becoming a Product Nation
The government’s vision of transforming India into a product nation is taking shape, as public initiatives align with private capital to fuel deep-tech innovation. Young semiconductor companies, once starved of funding and resources, are now taking bold steps—backed by national policy and venture support.
India’s semiconductor journey is still in its early stages, but with increasing investments, strong policy backing, and a wave of engineering talent, the country is fast emerging as a serious player in the global chip design arena.