Fabless semiconductor startups are transforming India’s chip landscape. From Mindgrove’s IoT SoC breakthrough to emerging players like InCore and Saankhya Labs, India is proving that world-class chip design in India is possible without domestic fabs.
Quick Take
India’s hardware story is shifting fast. Fabless semiconductor India startups are proving that design-driven innovation can thrive without billion-dollar foundries.
This wave of startups grew directly from India’s new policy backbone, the Design Linked Incentive (DLI) Scheme, which set the foundation for today’s localisation drive. (Learn more about how India’s semiconductor policy is shaping chip design and localisation in India’s Semiconductor Design Ecosystem and Localisation Policy.)
Mindgrove’s 28-nm IoT SoC India chip, designed entirely in Chennai, shows how design excellence and local IP ownership can power digital sovereignty.
Meanwhile, InCore Semiconductors, Saankhya Labs, and Morphing Machines are following similar paths, targeting automotive, telecom, and embedded systems.
These companies are building India’s fabless identity, turning chip design in India from an idea into a real industry.
How did the fabless semiconductor India model take root?
The fabless approach, design locally, manufacture globally—first gained traction in the US and Taiwan. In India, it began to emerge only after the 2021 Semiconductor Mission. It took off after MeitY introduced the Design Linked Incentive (DLI) programme, a policy detailed in India’s Semiconductor Design Ecosystem and Localisation Policy.
Key enablers:
- Design Linked Incentive (DLI) Scheme funded early-stage startups such as Mindgrove and InCore.
- Academic incubators at IIT Madras, IISc Bangalore, and IIT Delhi began hosting chip design labs.
- EDA cloud infrastructure from C-DAC reduced design software costs.
Unlike traditional electronics manufacturing, fabless startups need brains, not massive factories. Their success proves India can own IP and export chip designs before setting up domestic fabs.
Mindgrove’s Secure IoT chip, India’s first commercial 28-nm SoC, became a landmark success story for the fabless model.
Read here → India Chip Startup Mindgrove Redefines Chip Design in India
Who are India’s leading fabless startups, and what are they building?
1. Mindgrove Technologies (Chennai)
- Focus: Low-power IoT SoCs for consumer and industrial devices.
- Edge: RISC-V architecture, hardware localisation in India strategy.
- Backed by: IIT Madras & MeitY’s DLI Scheme.
2. InCore Semiconductors (Chennai)
- Focus: Custom RISC-V cores and chiplet-based IP design.
- Offers design IP services to defence and automotive clients.
- Origin: IIT Madras research group incubation.
3. Saankhya Labs (Bengaluru)
- Focus: Software-defined radios (SDRs) and broadcast chips.
- Acquired by Tejas Networks (Tata Group) in 2022.
- Demonstrates how Indian IP can scale into global markets.
4. Morphing Machines (Bengaluru)
- Focus: AI-driven reconfigurable processors for defence and edge applications.
- Collaborating with DRDO and ISRO.
Together, these firms are forming India’s fabless cluster—where design, IP creation, and local testing intersect.
Why are IoT SoCs India’s biggest opportunity?
The global IoT chip market will exceed US $450 billion by 2030. India’s strength lies in IoT and embedded systems—segments that don’t require 5 nm fabs or ultra-high investments.
IoT SoC India chips use 28-nm to 55-nm node technologies affordable for fabless startups. These chips power:
- Smart homes and energy meters
- Industrial automation controllers
- Wearables and automotive sensors
Mindgrove’s Secure IoT chip and InCore’s open RISC-V designs fit this sweet spot: low cost, low power, and high scalability.
Local Impact: India imports ~90% of its microcontrollers. Replacing even 10% with local designs saves over $1.5 billion annually and creates a domestic IP pipeline.
What challenges hold back India’s fabless revolution?
- Foundry dependence – Startups still rely on TSMC or Samsung for fabrication. Delays increase costs by 30–40 %.
- Capital intensity – Each chip tape-out can cost $1–2 million. Venture funds often hesitate.
- Testing infrastructure – India lacks commercial packaging and test facilities.
- Talent shortage – EDA and VLSI engineers exist, but system architect expertise is limited.
The Semiconductor Mission is addressing these through design clusters and public-private testing labs. Until foundries arrive, the fabless path remains India’s best entry point into the chip economy.
How can fabless startups and policy align better?
For long-term scaling, India needs a three-layer policy focus:
- Design: Expand DLI Scheme funding to support second- and third-generation chips.
- Localisation: Link fabless startups with Indian testing firms like Kaynes and CG Power.
- Market Access: Mandate public procurement of Indian-designed chips for IoT devices.
If these steps align, India can capture design value before mass manufacturing arrives.
Why Mindgrove matters in this bigger picture
Mindgrove is more than a startup—it’s a proof of concept for India’s hardware localisation vision.
Its 28-nm IoT SoC was designed entirely in Chennai and is being tested locally.
The project was funded under the DLI Scheme and incubated at IIT Madras. It represents India’s first complete cycle of design → validation → local testing—without foreign design control.
Mindgrove’s model can be replicated nationwide to achieve hardware sovereignty India-wide.
End Note
The fabless movement is India’s practical route to chip sovereignty. Mindgrove opened the door, and InCore, Saankhya, and others are walking through it.
India does not need to wait for a 10 billion-dollar fab to own its silicon future; it needs more startups to design, test, and ship chips built on Indian IP.
With policy and capital aligned, the next decade could see India transition from “design for others” to “design for the world.”
Related Reads
- India Chip Startup Mindgrove Redefines Chip Design in India: Inside India’s First Fabless Semiconductor and IoT SoC Breakthrough
- India’s Semiconductor Design Ecosystem and Localisation Policy: Can Design-Linked Incentives Deliver?
References
- Moneycontrol – “No One Thought India Could Build Its Own Chip Until Chennai Startup Mindgrove Did It”
- MeitY – Design Linked Incentive (DLI) Scheme Overview
- IIT Madras – Mindgrove Incubation Press Note
- InCore Semiconductors – Official Site
- Saankhya Labs – Company Overview (Tata Group)
- C-DAC Semiconductor Mission Reports 2024
