Indian semiconductor startups are making significant strides toward commercial production, with companies such as Netrasemi, Mindgrove Technologies, and Agnit Semiconductors actively running customer pilots. These firms aim for large-scale output by late 2027, despite facing challenges from global supply chain pressures.
Netrasemi has already begun production of its flagship chip, providing samples to three customers for pilot testing, with expectations for commercial volumes by mid-2027. Meanwhile, Mindgrove, supported by PeakXV, is targeting a commercial rollout by the end of this year, with plans to ship hundreds of thousands of chips to over a dozen customers in the microcontroller sector.
Agnit Semiconductors, based in Bengaluru, specializes in gallium nitride chips for strategic and defense applications. The company has three pilots underway, anticipating production volumes of 5,000 to 10,000 chips within the next six to nine months.
Government Support and Industry Growth
The Indian semiconductor industry, projected to grow from over $60 billion in 2025 to nearly $180 billion by 2034, is benefiting from government initiatives. The India Semiconductor Mission, launched in December 2021, has accelerated the transition from prototype to production, aided by the Design-Linked Incentive (DLI) and Production Linked Incentive (PLI) schemes.
These initiatives have enabled companies to move quickly from prototyping to customer sampling and ramping up production volumes. The DLI scheme supports chip design, while the PLI scheme provides financial backing for manufacturing.
Challenges in the Supply Chain
Despite progress, the semiconductor sector is grappling with supply chain challenges, particularly due to reliance on imports from China. Recent geopolitical tensions have exacerbated these issues, with a 21% drop in shipments from China affecting component availability.
Production timelines have also been impacted, with delivery times for printed circuit boards extending from seven days to 25 days. The cost of scaling production is another concern, as the initial tape-out process can exceed $3 million, with further costs for achieving production-grade quality.
Future Outlook
As Indian semiconductor startups continue to advance, the government’s role in fostering a domestic market for chips will be crucial. Encouraging local manufacturers could help mitigate reliance on foreign imports and strengthen the industry’s growth trajectory.
