Semicon India: What's Next for India's Semiconductor Startups?

India's semiconductor industry is experiencing a surge of activity. Recent developments include Prime Minister Narendra Modi's announcement of a ₹1.5 lakh crore investment in the sector, Uttar Pradesh's plans to establish its first OSAT unit, and the Adani Group's partnership with Tower Semiconductor to build a $10 billion semiconductor manufacturing facility in Maharashtra. These initiatives collectively signal India's growing ambition to become a key player in the global semiconductor supply chain. This marks a pivotal moment for India's Tech Startup Ecosystem, which has already shown strong interest in the semiconductor industry.

Despite challenges faced by previous attempts, like those of Foxconn and ISMC, India's semiconductor market continues to attract global interest. Valued at an estimated $63 billion by 2026, it offers lucrative opportunities for both international players and domestic startups. With major conglomerates such as Adani, Tata, and HCL stepping in, the environment is ripe for fostering innovation and growth in the tech sector.

A Wave of Innovation: 15 Promising Semiconductor Startups

TICE Team Research highlights ‘The Fab Fifteen’ (listed in order of their years of establishment) (YoE) innovative Indian startups that are already making waves in the semiconductor industry. These trailblazers are driving India’s technological growth and contributing significantly to its journey toward self-sufficiency.

• CalligoTech – 2024

  Founded in 2024, CalligoTech leads the way in AI-driven semiconductor design. By merging advanced AI algorithms with traditional technology, they are creating smarter chips that enhance development cycles and cut costs—critical as global demand for efficient chips soars.

• Morphing Machines – 2024 (Secured Funding)

  Morphing Machines secured significant funding in 2024 to advance its hardware architecture solutions for AI and edge computing. Their innovative approach bridges the gap between performance and energy efficiency, enabling devices to process complex algorithms at the edge with minimal power use. They aim to revolutionize industries such as autonomous vehicles, IoT, and cloud computing.

• AGNIT Semiconductors – 2019

  AGNIT Semiconductors, a fabless company based in Bengaluru, specializes in Analog, Mixed-Signal, and RF solutions. Founded in 2019, AGNIT focuses on delivering cost-effective solutions for automotive, telecommunications, and industrial automation, positioning itself as a key player in both Indian and global markets.

• Chipspirit – 2018

  Established in 2018, Chipspirit focuses on semiconductor intellectual property (IP) and microprocessor design. Their innovations span sectors like automotive, networking, and communications, pushing the boundaries of chip performance while keeping energy efficiency at the forefront—vital for the IoT and high-performance computing markets.

• Incore Semiconductors – 2018

  Incore Semiconductors, founded in 2018, is democratizing chip design with RISC-V-based IPs and processors. By developing scalable, open-source hardware, Incore empowers startups and tech innovators to access powerful and customizable processors for IoT, embedded systems, and machine learning.

• VerveSemi – 2017

  VerveSemi, established in 2017, focuses on analog and mixed-signal IC designs for healthcare, automotive, and consumer electronics. Their expertise in power management ICs and sensor interfaces offers high-performance solutions that are energy-efficient—critical for modern tech applications.

• Blueberry Semiconductors – 2017

  Blueberry Semiconductors designs high-speed interface IP cores, specializing in data centers, communications, and high-performance computing industries. Founded in 2017, their solutions help accelerate data transfers while minimizing power consumption, making them indispensable in today’s fast-paced tech world.

• Oakter – 2015

  Oakter, founded in 2015, is transforming Indian homes with IoT-enabled smart devices like plugs, locks, and water-level controllers. Their focus on local manufacturing and affordability is accelerating the adoption of smart home technology across the country.

• SignOff Semiconductors – 2015

  SignOff Semiconductors, a leading player in the Electronic Design Automation (EDA) space, was founded in 2015. Their flagship verification tool ensures chip designs are error-free before production, serving critical sectors such as automotive, telecommunications, and consumer electronics.

• Cientra – 2015

  Cientra, established in 2015, provides end-to-end VLSI design and semiconductor services. From front-end to back-end design, they offer comprehensive solutions for industries looking to accelerate product development and minimize time-to-market.

• Sensesemi – 2014

  Founded in 2014, Sensesemi focuses on energy-efficient semiconductor designs for smart sensors used in healthcare, environmental monitoring, and consumer electronics. Their innovations allow for longer battery life and more reliable sensing, advancing everyday technology.

• Aura Semiconductor – 2011

  Aura Semiconductor, founded in 2011, specializes in analog IP solutions for wireless communications, IoT, and automotive industries. Their world-class radio frequency (RF) and power management ICs have positioned them as a key global player.

• Terminus Circuits – 2010

  Established in 2010, Terminus Circuits designs ultra-low power, high-speed serial links for data communication systems. Their innovative products support automotive, data centers, and consumer electronics, delivering faster and more energy-efficient data transfer rates.

• Saankhya Labs – 2007

  Saankhya Labs, founded in 2007, is a leader in software-defined radio (SDR) technology. Their versatile chipsets power applications ranging from broadband and satellite communication to 5G and IoT. Saankhya Labs is also contributing to the defense communication sector, cementing their status as a semiconductor powerhouse.

• Morphing Machines – 2005 (Initial Establishment)

  Originally founded in 2005, Morphing Machines pioneered reconfigurable computing hardware. Over the years, they have shifted their focus toward AI and edge computing, delivering highly scalable and energy-efficient solutions that are reshaping the tech industry.

These 15 startups represent the cutting edge of India’s semiconductor ecosystem, each contributing uniquely to the nation’s ambitious goal of self-reliance and global competitiveness. 

India's Semiconductor Startups and the Impact of Big Player Investment

India's semiconductor startups have already played a pivotal role in creating a conducive environment for larger players to enter the market. Their innovative work, technological advancements, and talent development have demonstrated the potential of the Indian ecosystem.

As the Indian semiconductor industry grows and attracts more significant investments, these startups stand to benefit immensely. Many will likely secure substantial business opportunities, partnerships, and even acquisitions from larger players. The talent pool nurtured by these startups will also be in high demand, leading to better career prospects for their employees.

While the influx of big players may disrupt the market dynamics for some startups, the overall impact is likely to be positive. Increased competition can drive innovation, improve efficiency, and accelerate growth. Additionally, the larger players can provide valuable resources, expertise, and market access that can help startups scale their operations and reach new heights. 

While there may be challenges to navigate, the overall outlook is promising for the future of India's semiconductor ecosystem and Tech Startups in this business.