India’s Chip Design Startups Attract Record Investments, Powered by Government Push: MeitY

New Delhi, July 25: India’s semiconductor design sector is witnessing a historic surge in private investments, driven by focused policy support from the Government of India. The Ministry of Electronics and IT (MeitY) on Wednesday reported that several startups supported under its Design Linked Incentive (DLI) Scheme and the Chips to Startup (C2S) Programme have secured significant venture capital funding, signaling the emergence of India as a global semiconductor design hub.

₹107 Crore Investment for Netrasemi

One of the most notable developments is the ₹107 crore VC funding secured by Netrasemi, a startup developing chips for smart vision systems, CCTV cameras, and Internet of Things (IoT) devices. The company is among the beneficiaries of MeitY’s chip design support framework.

Union Electronics and IT Minister Ashwini Vaishnaw welcomed the development and stated,

“India has significant design capabilities. With the India Semiconductor Mission supporting Design in India, the success of Netrasemi will encourage other Indian startups to innovate boldly in chip design.”

Government Commitment of ₹234 Crore

Since the DLI Scheme’s launch in 2022, the government has committed ₹234 crore in support for chip design projects from 22 companies, covering a combined project cost of ₹690 crore. These projects span a wide range of applications—from surveillance and mobile networks to automotive, space, and smart consumer electronics.

Startups Gaining Global Recognition

• Mindgrove Technologies, focused on CCTV chip design, has raised ₹85 crore
• Fermionic Design, working on satellite communication chips, secured ₹50 crore
• Other promising startups like Morphing Machines, InCore Semiconductors, and BigEndian Semiconductors are progressing rapidly toward commercial production
• Five Indian startups have already built and tested their chip designs in collaboration with global semiconductor fabrication partners

Furthermore, over 72 design houses and startups have been granted access to advanced Electronic Design Automation (EDA) tools and software platforms, ensuring a globally competitive edge.

A ‘Product Nation’ in the Making

The success of these ventures signals a broader transformation of India into a “product nation”—moving beyond IT services to owning intellectual property and hardware innovation. With sustained government backing and increasing private investor confidence, India is fast positioning itself as a semiconductor design powerhouse.

This momentum aligns with India’s strategic goal under the India Semiconductor Mission to not only assemble but also design, fabricate, and commercialize semiconductor technologies indigenously, ensuring long-term technological sovereignty and global competitiveness.