India’s semiconductor startup ecosystem moves from tape-out to commercialisation

India’s semiconductor startup ecosystem is beginning to move beyond designs and prototypes towards working silicon, customer engagement, and early commercialisation, signalling a new phase in the country’s semiconductor journey.

The transition was highlighted by Prime Minister Narendra Modi during the inauguration of SEMICON India 2026. “But work does not stop after tape-out. On that very day, work begins on the next version. And India is doing the same,” Modi said.

At the event, Union Minister for Electronics & IT Ashwini Vaishnaw said Semicon 2.0 aims to support at least 200 chip-design companies, describing the expansion as a “game changer” for building homegrown semiconductor intellectual property. More than 105 chip-design startups have already gained access to advanced electronic design automation (EDA) tools, while 20 have secured venture-capital funding, he said.

For India’s emerging semiconductor startups, tape-out is increasingly becoming the starting point for the next stage of development rather than the end of the journey.

“Tape-out is no longer the end of the journey—it is the beginning of productisation, qualification, manufacturing, customer adoption and scale, and of the transition from design services towards a ‘Product Nation’, with Indian-designed chips increasingly moving into end products,” said Ashok Chandak, President, IESA and SEMI India.

SEMICON India 2026 showcased this shift, with Indian semiconductor and electronics startups displaying indigenous chips, intellectual property and technology solutions across applications including AI, vision, surveillance, embedded processing, smart metering, networking, smart energy, automotive, motor control, drones and sensing.

Startup Mitra creates platform for emerging innovators

IESA’s Startup Mitra initiative created a dedicated platform for startups at SEMICON India 2026, with 28 startup pods in Hall 2. The initiative provided affordable exhibition space and visibility to early-stage companies working across fabless semiconductor design, hardware, AI design tools, materials, chemicals and compound semiconductors.

Around 20 additional startups participated through larger booths across Halls 1 and 2. These included CraftifAI, ThirdAI Automation, Indnix Technologies, Morphing Machines and Lightspeed Photonics.

A key attraction of Startup Mitra was Silicon Pitch Live, which brought 10 semiconductor and electronics startups from a pool of more than 100 applicants in front of investors. The pitching round was attended by more than 20 venture-capital investors, creating a platform for startups seeking capital to move from prototypes to products and eventually volume production.

The six-member investor jury comprised Peak XV Partners, IvyCap Ventures, Applied Ventures, Lam Capital, Akti Ventures and Speciale Invest. Elphins Technologies, Meukron Technologies, Multi Nano Sense Technologies and CraftifAI emerged as winners.

The initiative was designed not only as a competition but also to generate investor interest and facilitate connections for startups at the early stages of their commercial journey.

Synopsys also committed $250,000 in cloud tool and compute credits for startups, giving them access to technology infrastructure needed to develop next-generation products.

Five DLI startups showcase India’s chip-design capabilities

The startup focus extended to the main conference, which featured a keynote by Neel Gala of InCore Semiconductors, an IIT-Madras-incubated company developing RISC-V-based solutions.

The conference also hosted a VC and Investor Panel, moderated by Deemant Nagaraj of Agrani Labs, which examined the Indian startup ecosystem, investor perspectives and ways to unlock greater funding for semiconductor companies.

A Startup Founders Panel, moderated by Pradeep Vajram of 7Rays Capital and IESA Vice Chairperson, brought together founders to discuss their entrepreneurial journeys, challenges and strategies for moving from technology development to commercialisation.

Five DLI-supported startups—Aheesa, Vervesemi, InCore Technologies, Netrasemi and Mindgrove—were also prominently showcased at SEMICON India 2026. Their participation reflected the expanding breadth of India’s semiconductor startup ecosystem, with companies increasingly developing silicon for real-world applications.

Akshay Agrawal and Sundeep Gupta, leaders of the IESA Startup Mitra initiative, said the platform is intended to connect startups with India’s growing electronics manufacturing ecosystem and support them as they move from technology development towards market adoption.

“The most encouraging development is that we are beginning to see working silicon, customer engagements, product partnerships and early pathways towards commercialisation,” they said.

Can Semicon 2.0 help startups scale?

The launch of Semicon 2.0 provides a broader policy platform for the next phase of India’s semiconductor development. The programme has a total outlay of ₹1,27,500 crore and identifies design, machines and materials, fabs, advanced packaging, research and development, and talent as key pillars.

The larger opportunity lies in connecting India’s indigenous semiconductor capabilities with its rapidly expanding electronics manufacturing ecosystem. The semiconductor startup journey, therefore, is increasingly extending beyond designing a chip or completing a tape-out. The next steps involve manufacturing, qualification, customer adoption and deployment into products that can achieve scale in India and global markets.