‘Semiconductors is a marathon’: Mindgrove CEO backs govt’s latest chip push

India’s semiconductor ambitions are gathering fresh momentum as the government prepares a new multi-billion-dollar support fund, with industry leaders saying the country must treat chip manufacturing as a long-term strategic effort rather than a quick win.

Commenting on the government’s latest push, the chief executive of semiconductor startup Mindgrove Technologies told Fortune India that India’s efforts in the sector must be seen as part of a sustained journey.

“Semiconductors is a marathon, and the most important thing is to stay the course,” the CEO said, welcoming the government’s continued investment in the sector. “It is heartening to see the government doubling down after the initial forays and tentative successes of the past few years.”

The comments come after reports that the government is preparing to launch a new fund of roughly $11 billion (about ₹1 lakh crore) aimed at boosting domestic semiconductor production and strengthening India’s chip ecosystem. The initiative, expected to roll out in the coming months, would provide subsidies for chip design projects, manufacturing equipment and supply-chain development, according to a Bloomberg report.

Push towards a $100-billion semiconductor ecosystem

The fund is part of India’s broader effort to build a globally competitive semiconductor industry, with policymakers aiming to tap into a market that is expected to expand rapidly in the coming years.

Estimates cited in policy discussions suggest that India’s semiconductor market could approach $100 billion in size over the coming decade, driven by demand from sectors such as electronics, artificial intelligence, telecommunications and electric vehicles.

Design seen as India’s strongest edge

Mindgrove’s chief executive said the government’s stress on semiconductor design was particularly important, noting that the design segment generates the most value in the chip supply chain.

“Design is the part of the supply chain where the most value is generated and where the most innovation happens,” he said, adding that India appears to be pursuing an end-to-end semiconductor strategy in which owning intellectual property will be crucial.

If implemented effectively, the new fund could help transform India’s design strengths into globally competitive chip products, he added.

Government building on earlier semiconductor initiatives

India’s semiconductor push began gaining traction in 2021, when the government launched the India semiconductor mission (ISM) with financial incentives to attract chip fabrication and related investments. The programme included an allocation of roughly ₹76,000 crore to support semiconductor manufacturing and display production.

More recently, the government has expanded the initiative under Semiconductor Mission 2.0, focusing not only on fabrication but also on building a skilled workforce and strengthening the wider ecosystem. The programme aims to extend semiconductor training and research initiatives to 500 academic institutions across the country, helping develop a pipeline of engineers in chip design, fabrication and testing. 

AI and chips increasingly intertwined

The renewed push for semiconductor development also coincides with India’s broader technology ambitions, particularly in artificial intelligence.

At recent technology and AI forums, policymakers have spoken on the  link between AI computing infrastructure and domestic semiconductor capabilities, stressing that chip design and manufacturing will be central to the country’s long-term digital ambitions.

“We’re at an early but critical stage of India’s semiconductor journey,” the CEO said. “Moves like this help keep the momentum going,” he added.