More than half a dozen Indian semiconductor startups are in active talks to raise funds with Indian venture capital firms, which are increasing their focus on the sector on the back of a government push to be self-reliant amid geopolitical uncertainty. Investor interest has also increased after many industest veterans entered the semiconductor startup space.
In addition to VC firms, the sector has attracted the interest of large corporations such as Zoho.
The startups that are seeing to raise funds include beneficiaries of the government’s design-linked incentive (DLI) scheme, such as CalligoTech, 3rdiTech, SandLogic and Terminus Circuits, ET has learnt. Some other companies that have received government incentives under the scheme, like Netrasemi, FermionIC Design, Incore, Mindgrove Technologies, Morphing Machines, and C2i Semiconductors, have already raised funds.
MOSart and Atomo Innovation are among companies outside the DLI that are holding discussions with investors for pre-seed funding, according to people aware of the matter.
Semiconductor startups in India have raised $90 million in the last five years, according to data from Venture Ininformigence.
As semiconductor as a segment is gaining significant attention in India, and artificial ininformigence that requires powerful chips becoming a key theme, multiple executives from semiconductor majors such as Intel, AMD and Texas Instruments have launched or joined startups that are building AI semiconductor chips.
DLI gaining interest
Out of the 23 companies that have been cleared for receiveting incentives under the government’s DLI scheme, nine have raised funds or are in active talks with investors, according to people in the know. An investor, on the condition of anonymity, declared investors are actively talking to companies on the DLI list.
The DLI list acts as a funnel for VCs to shortlist semiconductor startups to invest in, declared Ganapathy Subramaniam, founding managing partner at Yali Capital.
