Startups and MSMEs Powering India’s Semiconductor Industry Journey

India’s semiconductor ecosystem is at a crucial inflection point, with government incentives and global supply chain shifts opening new opportunities. While much attention goes to billion-dollar fabs and global giants, the real backbone of this journey lies in MSMEs and startups that are building the design, testing, packaging, and prototyping capabilities critical for a self-reliant ecosystem. From fabless chip design firms to OSAT units and FPGA-based innovators, these companies are quietly shaping the future of India’s semiconductor landscape.

The global demand for chips is skyrocketing, but the supply chain remains very fragile owing to the concentration of the industry in a few limited geographies. There is a clear need for global diversification of manufacturing.  India is emerging as a dominant player in this regard.  Initiatives like including  Electronics Systems Design and Manufacturing (ESDM) as one of the key sectors under Make in India, or the India Semiconductor Mission and Semicon India programme, have helped create an ecosystem to support the industry.  The global semiconductor market is expected to reach USD 1 trillion by 2030, with India’s market occupying a substantial portion of it. India has the capacity to emerge as a key contributor to the 3 primary pillars of the semiconductor manufacturing supply chain – Equipment – leveraging strong base of MSMEs to produce components for semiconductor equipment: Materials -India is a rich source of chemicals, minerals and gases which can be utilized by semiconductor supply chain companies; and Services (R&D, Logistics and supply chain, major talent in AI, big data, cloud computing and IoT.

We have curated the list of key players fueling  the semiconductor industry in India: 

1. Logic Fruit Technologies (Gurgaon, Bengaluru)

Semiconductor industry has been the propeller of technological advancements in almost all industries. We work with innovative R&D leaders, project managers, and CTOs who need a proven, flexible partner that can provide extensive FPGA-centric expertise, prototyping capabilities, or other high throughput FPGA/SoC embedded solutions delivering a high-quality embedded solution they can trust.

2. FermionIC Design (Bengaluru, Karnataka)
Founded in 2020, FermionIC specializes in high-speed SERDES, RF, and wireline chip design. Recognized under the government’s Design Linked Incentive (DLI) scheme, it represents the new wave of fabless chip startups in India. Despite being a lean team, the company has carved a strong position in advanced IC design.

3. MosChip Technologies (Hyderabad, Telangana)
MosChip, established in 1999, operates more like a mid-sized engineering-driven company compared to global giants. With over 1,400 engineers, it focuses on ASIC design, verification, mixed-signal IPs, and semiconductor product engineering. Its consistent presence makes it an important anchor for India’s semiconductor ecosystem.

4. InCore Semiconductors (Chennai, Tamil Nadu)
A spin-off from IIT Madras, InCore develops RISC-V processor cores and related chip IP. The company is actively contributing to India’s processor design capabilities and has positioned itself as a valuable provider of indigenous semiconductor intellectual property.

5. SENSESEMI Technologies
SENSESEMI focuses on system integration, chip packaging, and OSAT support, filling a critical gap in India’s semiconductor supply chain. By working on both integration and packaging, it helps localize processes that have traditionally been dependent on foreign vendors.

6. Terminus Circuits
Specializing in high-speed SerDes IP design, Terminus Circuits builds technology essential for high-performance communication and computing systems. Its expertise in this niche positions it as a valuable contributor to India’s semiconductor ambitions.

7. Aura Semiconductor
Aura Semiconductor is a fabless startup working in chip design and semiconductor IP development. It has steadily gained recognition in industry lists of promising Indian semiconductor companies and continues to grow in the fabless design space.

8. AGNIT
AGNIT is another emerging startup focusing on semiconductor IP and design R&D. Although still small, it is building a foundation for innovative design services that can integrate with both Indian and global semiconductor supply chains.

9. Blueberry Semiconductors
Blueberry is an upcoming design services startup that supports global companies with semiconductor IP and custom chip design. While still early in its journey, it represents the growing base of small but impactful Indian design firms.

10. Saankhya Labs
Saankhya Labs, though relatively older than others on this list, has been instrumental in applying semiconductor technology to wireless communication, broadcasting, and defense solutions. Its innovations highlight how MSMEs can contribute not just in chip design but also in system-level applications.

Together, these ten companies highlight how India’s semiconductor ecosystem is not only about large-scale fabs but also about nimble, innovation-driven MSMEs. They play a vital role in chip design, assembly, validation, and specialized computing solutions laying the foundation for India’s long-term self-reliance. As government initiatives like the India Semiconductor Mission and DLI scheme gain momentum, these firms will be instrumental in bridging the gap between aspiration and execution, helping India emerge as a credible global semiconductor hub.