Kerala-based Netrasemi declared its AI chip production-ready in May 2026 with 3 OEM trials live. Mindgrove signed Bosch for field deployments. Agnit closed a $7.47M funding stack in March 2026 targeting 1 lakh GaN units. The prototype era is over; delivery pressure has begun.
| Metric | Value | Details |
|---|---|---|
| India Semiconductor Market (2025) | $45 Billion | Expected to reach $100 Billion by 2030 |
| DLI Scheme Support | 24 Startups | Supported under the Design-Linked Incentive (DLI) scheme |
| VC Funding Attracted | ₹430 Crore | Raised by supported startups as of January 2026 |
| Sector VC Funding Growth | 10× Increase | From $5 Million in 2023 to $50+ Million in 2025 |
| Netrasemi Commercial Launch Target | Mid-2027 | Based on TSMC 12nm volume production roadmap |
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Breaking development
Netrasemi: India’s first production-ready edge AI chip — trials live now
Kerala-based Netrasemi declared its A2000 AI system-on-chip production-ready in May 2026, with customer trials already underway, CEO Jyothis Indirabhai confirmed to The Economic Times. This is not a prototype announcement. The chip has cleared silicon bringup and is in active OEM evaluation.
- A2000 chip on TSMC 12nm node — integrates in-house NPU, VPU, ISP, and crypto engines
- Trials running with 3 OEMs in surveillance and automotive sectors as of May 2026
- Commercial launch target: mid-2027; volume production at TSMC Taiwan: 2027
- Second chip R1000 (AI/ML MCU for IoT) sent to TSMC fabrication in May 2026 via MeitY C2S programme
- Third chip A4000 (edge AI server chip, MeitY-backed) — fabrication-ready target: Q2 2027
- Total funding: ₹125 crore from Zoho Corp + Unicorn India Ventures (July 2025 Series A: ₹107 crore)
- One of first 4 startups to receive ₹15 crore DLI support from MeitY in 2023
- Plans to double headcount from 83 to 166 chip engineers within 12–18 months
The A2000 targets compact, power-efficient edge deployments, smart cameras, AI gateways, CCTV intelligence, and industrial robots. Engineering samples already run object-detection models under five watts. What sets this apart from earlier Indian chip announcements: there are actual customer co-development agreements in place, not just lab silicon.
Mass production entry
Mindgrove: Bosch signs for field deployment — 30% cheaper than imported alternatives
IIT Madras-incubated Mindgrove Technologies signed an MoU with Bosch Global Software Technologies in June 2025 to field-deploy its Secure IoT SoC across automotive, industrial, and consumer applications, the first Tier-1 global validation for an Indian-designed microcontroller chip. The company is now entering the final pre-commercial phase.
- Secure IoT SoC: RISC-V architecture, 28nm, 700 MHz — India’s first commercial-grade high-performance MCU
- Priced 30% lower than competing imported chips of equivalent class
- Bosch Global Software Technologies MoU (June 2025): field deployment and testing, SoC co-development, potential long-term supply agreement
- Pinetics commercial agreement (2025): two-year deal integrating Mindgrove chips into biometric, smart lock, and camera products
- Pilot deployments underway in biometrics, EV battery management, smart meters, industrial IoT, and wearables
- Total VC raised: ₹85 crore (including Peak XV Partners); DLI approval for Vision SoC also secured
- Vision SoC in development: targets CCTV, dashcams, ADAS systems, smart TVs
Updated funding — March 2026
Agnit: $7.47M raised, 1 lakh GaN units targeted over 24 months — defence pilots live
Bengaluru’s Agnit Semiconductors closed a $2.6M seed extension in March 2026, led by Shastra VC, that fund’s first semiconductor investment. Combined with its 2024 seed round of $3.5M (3one4 Capital + Zephyr Peacock), total funding reaches $7.47M. The company is pivoting harder toward telecom infrastructure and power semiconductors, where GaN demand is structurally growing.
- India’s only vertically integrated GaN manufacturer, designs and fabricates GaN wafers, chips, and RF subsystems in-house
- March 2026 seed extension: $2.6M led by Shastra VC (Shastra’s first semiconductor bet); total raised: $7.47M
- Target: 100,000 GaN components in 24 months (revised from earlier 12-month target)
- 3 distinct RF products already in pilot deployment on Indian strategic defence platforms
- Pivoting focus to telecom infrastructure and high-efficiency power semiconductors (5G base stations, fast chargers, EV power)
- Global GaN semiconductor market: $6.7B in 2026 → $51.35B by 2035 at 25.45% CAGR
- China controls 87–90% of global gallium reserves, Agnit’s domestic GaN supply chain is a direct strategic hedge
Verified data snapshot
All 3 startups at a glance
| Company | Chip / Tech | Key milestone | Production target | Total funding | Status |
|---|---|---|---|---|---|
| Netrasemi | A2000 AI SoC, 12nm TSMC | 3 OEM trials live (May 2026) | Mid-2027 | ₹125 crore | Customer trials |
| Mindgrove | Secure IoT SoC, 28nm RISC-V | Bosch MoU + Pinetics deal signed | Commercial now (pilots) | ₹85 crore | Pre-commercial |
| Agnit | GaN RF chips + wafers | $2.6M extension closed Mar 2026 | 1L units / 24 months | $7.47M | Defence pilots |
Government ecosystem
The policy engine behind these companies
All three startups draw directly from India’s ₹76,000 crore (~$8.67B) Semicon India Programme, with the Design Linked Incentive (DLI) scheme as the primary instrument.
| Metric | Figure | Date |
|---|---|---|
| Total Semicon India Programme outlay | ₹76,000 crore ($8.67B) | Launched Dec 2021 |
| DLI chip design projects approved | 23 projects | July 2025 |
| Startups with DLI/C2S EDA tool access | 72 companies, 278 academic institutes | July 2025 |
| Government committed under DLI | ₹234 crore across 22 startups | July 2025 |
| Total VC raised by DLI-backed startups | Over ₹380 crore | July 2025 |
| DLI startups total VC (updated) | ~₹430 crore | Jan 2026 |
| Sector VC funding 2023 | $5 million | Full year 2023 |
| Sector VC funding 2024 | $28 million | Full year 2024 |
| Sector VC funding 2025 | $50M+ (crossed $44M by July 2025) | 2025 |
| DLI long-term target | 100 chip cos; 20+ to cross ₹1,500 Cr revenue | 5-year horizon |
Risk factor
The supply chain problem: China controls the raw materials
India’s chip startups design domestically and fabricate mostly in Taiwan. That’s one vulnerability. The more acute one: China controls 87–90% of global gallium reserves, the key input for GaN semiconductors. In July 2023 China imposed gallium export licensing. By December 2024, it escalated to a full US export embargo. The US Geological Survey estimates a simultaneous full ban on gallium and germanium exports would cut US GDP by up to $9 billion.
- India currently imports 100% of its gallium and germanium, zero domestic processing capacity
- India’s National Critical Minerals Mission (approved by Union Cabinet, January 2025) directly targets gallium, germanium, and antimony stockpiling
- A separate National Critical Mineral Stockpile was announced in October 2025 as a direct counter to China’s export restrictions
- PLI scheme worth ₹7,280 crore for rare earth magnets launched to bolster upstream supply chain
- India has no domestic wafer fabrication facility; all three startups currently depend on TSMC Taiwan for production
- Agnit’s vertically integrated GaN model (IISc-backed domestic wafer fab) is the only current Indian hedge against gallium supply disruption
Road to market
Key milestones timeline
| Date | Event |
|---|---|
| May 2024 | Mindgrove launches India’s first commercial-grade RISC-V MCU SoC for secure IoT applications, built on 28nm technology. |
| June 2025 | Mindgrove signs an MoU with Bosch for SoC field deployment and joint chip development initiatives. |
| July 2025 | Netrasemi raises ₹107 crore in Series A funding led by Zoho and Unicorn India Ventures; 23 DLI chip-design projects receive approval from MeitY. |
| October 2025 | India announces a National Critical Mineral Stockpile following China’s export restrictions on gallium and germanium. |
| January 2026 | The Design-Linked Incentive (DLI) Scheme expands support to 24 startups, with cumulative VC funding attracted crossing ₹430 crore. |
| March 2026 | Agnit secures a $2.6 million seed extension round led by Shastra VC, taking total funding to $7.47 million, and targets production of 100,000 GaN units within 24 months. |
| May 2026 | Netrasemi announces its A2000 AI chip is production-ready; customer trials begin with three OEMs in surveillance and automotive applications. |
| Q2 2027 (Target) | Netrasemi’s A4000 edge AI server chip is expected to reach fabrication readiness. |
| Mid-2027 (Target) | Commercial launch of Netrasemi A2000, with volume production planned at TSMC, Taiwan. |
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FAQ
When will Netrasemi’s A2000 reach volume production and generate revenue?
Is Mindgrove’s Secure IoT chip available to buy today?
How many Indian chip design projects does the government actually fund, and by how much?
All figures verified against MeitY, Economic Times, 3one4 Capital, Entrackr, PIB, and company statements. Last updated June 1, 2026.
