New Chip Startup Aims to Revolutionize India’s Semiconductor Industry

P Raja Manickam, a seasoned semiconductor industry veteran and former CEO of Tata Electronics’ Outsourced Semiconductor Assembly and Test (OSAT) division, has launched a new fabless chip startup, iVP Semi, with a mission to localize design and chip production in India. The company is poised to make a significant impact in the industry, with a revenue target of $70-100 million in the next 3-4 years.

Manickam, who is now the CEO of iVP Semiconductor, emphasized the need for product companies that can put together chip designs and build products, which is exactly what iVP Semi aims to do. “We have good chip design companies, and Tata is also setting up a chip manufacturing facility. What we need are product companies that can take this technology and build products, which is what iVP will do,” he explained.

The Indian semiconductor industry is currently dominated by foreign players such as SD Micro, Infineon, OnSemi, Nexperia, and Texas Instruments. However, Manickam believes that the lack of chip manufacturing facilities in India has hindered the growth of local players. “There are no major Indian players in this space because we didn’t have chip manufacturing,” he noted.

Tata Electronics has recently broken ground for its Rs 91,000 crore semiconductor fabrication facility at the Dholera Special Investment Region in Gujarat. The company is also setting up a Rs 27,000 crore OSAT facility in Morigaon, Assam, while Murugappa Group’s CG Power and Industrial Solutions has started construction work for its Rs 7,000 crore OSAT facility in Gujarat.

iVP Semi will source wafers from Taiwan, Japan, and Korea, and then get the packaging done in India once Tata and CG Power start their operations. The company will also conduct testing at its own facilities before selling the chips to end consumers. Manickam highlighted the growing demand for smart grids in the power sector, including renewable energy, battery storage, and transmission requirements, which presents a huge opportunity for the electronics market. The total addressable market in the power space could be as high as $3.5 billion.

The company has already raised $5 million in a pre-series A funding round to scale up operations and set up testing facilities. iVP Semi is setting up chip design centers in Chennai and Bengaluru and has licensed product IP from Taiwan, Japan, and the US. The company is also working with the Tamil Nadu government to establish a 20,000 sq ft production test facility in Chennai, with plans to set up a second facility in another location in South India.

As an asset-light fabless company, iVP Semi is expected to create employment opportunities for around 250-300 people in the next 3 years. With its focus on the power sector, the company is well-positioned to capitalize on the growing demand for smart grids and other applications. Manickam’s vision for iVP Semi is to become a leading player in the Indian semiconductor industry, and with its strong team and strategic partnerships, the company is well on its way to achieving this goal.

Historical Context:

The Indian semiconductor industry has been dominated by foreign players for a long time, with limited local participation. The country has been working to develop its own chip manufacturing capabilities, with Tata Electronics and Murugappa Group’s CG Power and Industrial Solutions setting up fabrication facilities and OSAT facilities in recent years. The government has also been promoting the growth of the industry through initiatives such as the “Make in India” program.

The article highlights the launch of a new fabless chip startup, iVP Semi, which aims to localize design and chip production in India. The company is led by P Raja Manickam, a seasoned semiconductor industry veteran, and has raised $5 million in a pre-series A funding round to scale up operations.

Summary in Bullet Points:

• iVP Semi is a new fabless chip startup launched by P Raja Manickam, a seasoned semiconductor industry veteran, with a mission to localize design and chip production in India. • The company aims to make a significant impact in the industry, with a revenue target of $70-100 million in the next 3-4 years. • iVP Semi will source wafers from Taiwan, Japan, and Korea, and then get the packaging done in India once Tata and CG Power start their operations. • The company will conduct testing at its own facilities before selling the chips to end consumers. • iVP Semi has already raised $5 million in a pre-series A funding round to scale up operations and set up testing facilities. • The company is setting up chip design centers in Chennai and Bengaluru and has licensed product IP from Taiwan, Japan, and the US. • iVP Semi is expected to create employment opportunities for around 250-300 people in the next 3 years. • The company is focused on the power sector, with a total addressable market of $3.5 billion, and is well-positioned to capitalize on the growing demand for smart grids and other applications. • iVP Semi aims to become a leading player in the Indian semiconductor industry, with a strong team and strategic partnerships.