Startups, Venture Capitals push for ecosystem creation for semicon industry growth

Indian startups and venture capital (VC) firms have urged the government to establish a robust ecosystem to accelerate the growth of the country’s semiconductor industry. Speaking at Semicon India 2025, industry leaders highlighted the fragmented nature of India’s current semiconductor ecosystem compared with China, where original equipment manufacturers (OEMs), semiconductors, incentives, and capital are closely aligned. CEO of 3rdiTech, Ms. Vrinda Kapoor, stressed the need for India to build integrated structures to scale supply chains. In contrast, the CEO of Mindgrove Technologies, Mr. Shashwath TR, emphasised that Indian firms must move beyond chip design to manufacture full systems, including software stacks. Industry leaders noted that demand from sectors such as defence and security could provide early momentum for startups. However, collaboration between government, OEMs, and private investors would be critical for long-term competitiveness.
CEO of Hero Electronix, Mr. Nikhil Rajpal, highlighted that startups require scale from government procurement and OEM collaboration to be competitive against global firms. He added that venture capital and government support alone would not be sufficient without active participation from India’s corporate ecosystem. From the investor perspective, Co-founder of Bharat Innovation Fund, Mr. Som Pal Choudhury, said greater access to capital would follow once India achieves some semiconductor success stories, as venture funds are bound by fiduciary duties to ensure strong returns. Industry stakeholders agreed that coordinated efforts involving startups, OEMs, investors, and the government are essential to create a sustainable and globally competitive semiconductor ecosystem. They stressed that building such a foundation is critical for India to strengthen domestic capabilities and position itself as a serious contender in the global semiconductor market.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.