Indian semiconductor startups like Netrasemi, Mindgrove Technologies and Agnit Semiconductors are close to commercialisation, with them running customer pilots and gearing up for large-scale production, even as supply chain pressures threaten to slow the momentum.
These homegrown firms are targeting full commercial production by the end of 2027, and in some cases, well before that.
Netrasemi has already moved its flagship chip into production, handing samples to three customers that are now running pilots. Commercial volumes are expected by mid-2027.
PeakXV-backed Mindgrove, whose chips target biometrics, motor controllers and industrial electronics, is eyeing commercial rollout by the end of this year. The company currently counts over a dozen customers in the microcontroller segment and is targeting shipments of hundreds of thousands of chips this year, said cofounder Shashwath TR.
Bengaluru-based Agnit Semiconductors, which makes gallium nitride chips used primarily in the strategic and defence sectors, has three pilots already running. The company's customers include defence public sector units and private defence firms, with volumes expected to reach 5,000-10,000 chips in the next six to nine months.
"We have received encouraging feedback from two pilots, and both products will be ramping up to volumes soon," said founder Hareesh Chandrasekar.
India's semiconductor industry, valued at over $60 billion in 2025, is projected to reach nearly $180 billion by 2034, driven by the government's production-linked and design-linked incentive schemes, according to a recent report by market research firm IMARC.
Policy push
The rapid progression from prototype to production, typically a three- to four-year journey, has been significantly compressed by government schemes and a surge in venture capital.
The India Semiconductor Mission, launched in December 2021, set off a wave of activity. Since then, companies have moved from prototyping to sampling customers, taping out chips and ramping up volumes.
"We saw momentum when the India Semiconductor Mission started. Now we can see companies prototyping, sampling customers, ramping up volumes—all of this has been largely led by the DLI and PLI schemes," said Chandrasekar.
The Design-Linked Incentive (DLI) scheme backs chip design, while the Production Linked Incentive (PLI) scheme offers capital support for manufacturing.
However, most Indian manufacturers still purchase their chips from Taiwan and China. The government has shown it can move the needle. Earlier this year, restrictions on uncertified internet-connected CCTV cameras effectively shut out Chinese brands like Hikvision and Dahua, handing domestic manufacturers a fresh market opportunity. Chipmakers are hoping for a similar signal in their direction.
"Two years ago, there was no reason to buy (CCTV cameras) from an Indian OEM because so much was coming from Taiwan or China at far lower prices. But suddenly we are seeing Indian OEMs come to the forefront. The government has a big role to play in creating that same market for chips," said Netrasemi cofounder and chief executive Jyothis Indirabhai.
Supply chain strain
Even as the sector advances, firms are grappling with a worsening supply chain environment. A bulk of components are still imported, predominantly from China, and shipments from that country have dropped 21% following the Gulf conflict, tightening availability.
Supply chain disruptions have made chip production increasingly difficult. Even before the Gulf conflict, chipmakers often had to change materials during production, relying on safer and more easily available options based on partner advice rather than the best technical choice. Since the conflict, the situation has become even more uncertain.
“Pre-Gulf it was insane, but post that it has become unpredictable—so many different factors are coming in,” said Chandrasekar.
Delivery timelines for printed circuit boards have stretched sharply as well. Turnaround times that were once seven days have now stretched to 25, said Chandrashekar. The delays run deeper than boards. All chemicals used in semiconductor manufacturing are imported, and supply disruptions ripple across the production chain, said the founders.
The cost of scaling compounds the pressure. A single tape-out—the process of sending a chip design to a foundry for the first time—can cost upwards of $3 million, with full production-grade quality demanding multiples of that, said the founders.
