India is making tremendous technological advancements and striving to become a self-reliant semiconductor hub. In recent years, the country has noticed a significant rise in emerging technology startups, including semiconductor startups supported by startup accelerators and startup incubators in India. India’s remarkable tech progress includes electric vehicles, drones, and space vehicles, among many others. The country has also observed a substantial increase in the semiconductor industry in India with government support and private investments.
The Indian government’s proactive approach to fostering the semiconductor industry in India is evident in programs like the Semicon India and India Semiconductor Mission. These initiatives have provided a strong foundation for fabless semiconductor startups, packaging companies, and semiconductor design firms, further establishing India’s reputation among the top startup accelerators in India for semiconductors.
The country, aiming to reduce its dependency on other nations and stay ahead of the competition, has invested a significant amount of 1.6 trillion in setting up new semiconductor plants. These plants will cover the design and manufacturing of a wide range of semiconductor chips, from power management chips for electric vehicles to mobile phones.
Semiconductor startups can take this opportunity to establish themselves and thrive in a highly potential market. With concentrated efforts, the government hopes to grow the semiconductor industry in India fivefold, from US $35.18 billion in 2023 to $109.8 billion in 2030. However, how can startup accelerators in India support the growth of these startups to play a significant role in this industry? This blog will explain how startup accelerators and incubators in India are pivotal in helping these startups boost the Indian semiconductor industry.
A fresh perspective is required to drive innovation and agility, which are essential in overcoming challenges in any industry. Startups, particularly those supported by startup accelerators in India, are closely connected to innovation as they develop novel solutions that have the potential to disrupt traditional markets. According to McKinsey reports, the semiconductor industry in India strives for innovations because faster, more powerful, and smaller semiconductor chips generate sales across all value chain segments.
For instance, some semiconductor startups, like Agnit Semiconductors, are developing semiconductor chips using compound semiconductor materials instead of Silicon. These include Silicon Carbide (SiC) and Gallium Nitride (GaN), suitable for applications requiring high power and frequency, limiting energy loss and creating small form factors.
Here are different ways semiconductor startups are contributing to the semiconductor industry in India:
Rather than relying on off-the-shelf designs, semiconductor startups focus on introducing and launching unique and tailored solutions. These startups work on system-on-chip (SoC) designs, energy-efficient processors, and AI-focused semiconductor chips ideal for automation, IoT, and smart devices. These innovations will help India become self-reliant in chip design and reduce dependency.
With the challenging business environments, the spotlight is on innovation. The emergence of new technology drives semiconductor startups to develop improved semiconductor chips and solutions to enhance efficiency, miniaturization, and power management.
Startup accelerator programs and government initiatives can assist these startups with funding to support increased R&D costs. Under the Semicon India Program, there are different schemes, like the Modified Scheme for setting up Semiconductor Fabs in India. This provides fiscal support of 50% of the project cost on a pari-passu basis (equally ranking without any preferences basis) for setting up Silicon CMOS-based semiconductor fabs in India.
There is a significant demand-supply market gap in India. In 2022, India imported $4.55 billion in semiconductor chips because microchips are highly complex and expensive to produce. The country requires locally developed and manufactured semiconductor chips to address these gaps and meet domestic industry demands.
This is where semiconductor startups, often nurtured in top startup accelerators in India for semiconductors, can focus on niche segments like custom chips for automotive, renewable energy, and space technology, which are under-reserved by large global companies. Reducing reliance on costly imports will be achievable if startups provide robust and feature-rich semiconductor chips tailored to India’s industry needs.
After understanding the critical role of semiconductor startups in boosting and elevating the semiconductor industry in India, it is essential to learn about some startups initiating this growth. The AIC T-Hub, sanctioned under the Atal Innovation Mission (AIM) of the Government of India, NITI Aayog, supports startups in healthcare, mobility, sustainability, and the semiconductor industry in India.
T-Hub is a Telangana Government-backed innovation hub that, in collaboration with the AIM, launched Semiconductor Cohort 2 to find, nurture, and scale promising semiconductor startups. Ten startups were selected, including FaceIntel Systems, Deepgrid Semi, Chipex Technologies, Zealy Smart Systems, and Geocon.
FaceIntel Systems is a Hyderabad-based startup that offers an innovative surveillance device using cutting-edge AI/ML technology. This device recognizes individuals through distinct facial characteristics without constant Internet connectivity or cloud reliance. The startup’s proprietary edge-based video analytics technology processes data on the device, addressing issues common to conventional cloud-based systems.
Geocon Smart Systems is reshaping the semiconductor landscape by offering a modernistic range of semiconductor chips that are customizable to specific needs. The startup has developed GEOSOC (Generic Econo-Optimized System-On-Chip, Chip Ecosystem), a flexible SoCs infused with web-based AI development. This helps tackle challenges associated with semiconductors, such as high entry costs, complex inventory management, and procurement processes.
Deepgrid Semi is a semiconductor startup in its early stages, focusing on building and developing specialised domain-specific architecture SoCs. Its DGRID-SoC is an innovative accelerator for vision and AI edge applications, compatible with FPGA devices and custom ASICs. This tailored solution provides more significant acceleration and power efficiency than general-purpose computing architectures, enhancing the performance of AI/computer vision tasks.
Accelerators and incubators in India play a transformative role in advancing the semiconductor industry. Immense capital and technological resources are required for semiconductor development. According to a McKinsey report, only a few companies globally can design and manufacture advanced semiconductor chips with node sizes of 14 nanometers.
This is because of the high skills and investment required for designing, R&D, scaling, and other activities. Meanwhile, demand for these semiconductor chips is rising due to their strong performance and low power consumption, making them suitable for AI/ML applications.
Accelerators provide targeted resources, mentorship from industry experts, and funding to help startups get started in the right direction. AIC T-Hub is one of the world’s largest startup ecosystems, fostering innovation and entrepreneurship in the semiconductor industry.
AIC T-Hub Semiconductor Program is a dedicated incubation program that will initiate the beginning of an active semiconductor ecosystem that innovates and grows to create a revolution in the industry. Any semiconductor-focused startup currently in the early stage or MVP development stage can enter this program. Besides mentorship and funding, startups get an opportunity to connect with a network of industry experts to get informational and experienced insights.
The semiconductor industry is expanding at a much faster rate and has enormous potential for the future. There are immense benefits to developing chips in-house, and the country’s upcoming talent can help boost semiconductor production. Indian startups can largely contribute to the growing semiconductor market. This helps the country to achieve its goal of becoming an independent semiconductor powerhouse.
While government initiatives exist to create a strong semiconductor startup ecosystem, the rising accelerators and incubators are doing their best to help startups nurture their MVPs into well-developed and feature-rich products.