iVP Semi Establishes Fabless Chip Company in India

Raja Manickam has launched iVP Semi, a fabless semiconductor startup aimed at empowering Indian system companies through localized chip production. iVP Semi focuses on local innovation and development, with strong system design competence to assist chip manufacturers and suppliers, enabling Indian companies to compete domestically and globally. The company has secured $5 million in pre-Series A funding to establish its presence in India, scale operations, set up testing facilities, and initiate marketing efforts.

iVP Semi is setting up chip design centers in Chennai and Bangalore and is licensing product IP from Taiwan, Japan, and the US. Despite being an asset-lite fabless company, iVP Semi will conduct chip and module testing internally. The company is collaborating with the State Government of Tamil Nadu to establish a 20,000 sq ft production test facility in Chennai, which will be operational by October 2024. A second test facility will be established in another location in South India.

The Chennai facility will handle design to testing, ensuring high-quality products and post-delivery support. It will also offer discreet and power module testing along with reliability and safety certification centers to reduce time to market for customers. iVP Semi's operations in India will primarily serve the local renewables, EV, and automotive industries. The company aims to achieve revenue of $70 million to $100 million in the next two to three years.

Commenting on the launch of iVP Semi, Raja Manickam, Founder & CEO, of iVP Semi, said “As a startup, iVP Semi recognizes the challenges faced by Indian semiconductor startups that aimed for the global market from the outset. Many struggled to survive due to the time and financial resources required to compete with established giants. Hence, our mission is to localize semiconductor chip production, empowering Indian companies to improve product development cycles and achieve greater technological autonomy. This approach not only ensures tighter control over the chip supply chain but also fosters an environment where semiconductor ecosystem partners are encouraged to establish a local presence. We envision a ripple effect where technology solutions developed by Indian companies will address global challenges, benefiting everyone.”

On this occasion, S. Krishnan, Secretary, Ministry of Electronics and Information Technology (MeitY), Government of India, said, “The semiconductor industry is vital for the country and India has the talent, deep expertise, and scalability to be a global player. The Government is helping industries to create the ecosystem to build semiconductors. iVP Semi plays an important role in creating demand to fill up the manufacturing capacity in wafer fab and OSAT. I would like to congratulate iVP Semi on the creation of an Indian fabless chip company.”

Earlier this year, McKinsey predicted that the global semiconductor industry will experience a decade of growth, reaching a value of one trillion dollars by 2030. The India Electronics and Semiconductor Association (IESA) estimates that India's semiconductor market will grow to $100 billion by 2030.

India is quickly becoming a major market for electronics and automotive sectors, particularly electric vehicles, and is a significant hub for technical expertise, emphasizing the need to enhance the Indian ecosystem. However, challenges such as manufacturing complexity, dominance of global players, lack of production-grade technology, and high capital costs continue to hinder India's progress toward self-sufficiency.

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