iVP Semi raises $5m to build India's first fabless facility
Indian startup iVP Semi has revealed plans to set up a 20,000 square foot production test facility in Chennai, which should be complete by October 2024.
iVP Semi was launched in January 2024 by Raja Manickam, a veteran of India's semiconductor industry. At a launch event last week reported by Times of India, Manickam unveiled iVP Semi as a fabless semiconductor startup that will design semiconductors while outsourcing the manufacturing and packaging of these chips to other companies.
He confirmed the new firm had raised USD 5 million in a series A and is now targeting areas such as renewable energy and EVs. iVP believes it can generate revenue of up to USD 100 million in three years.
The firm will now set up chip design centres in Chennai and Bengaluru and will licence product IP from Taiwan, Japan and the US. It is now working with the Tamil Nadu government to set up the proposed facility in Chennai.
"Our mission is to localise semiconductor chip production, empowering Indian companies to improve product development cycles and achieve greater technological autonomy," said Manickam. "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.”
The iVP move marks more progress by India to become a player in the chip space. It is currently strong in assembly and testing but lacks a fabless and foundry capability. Earlier this year, the Indian government rubber stamped a USD 15.2 billion budget to build three new semiconductor plants, including the country's first 12-inch wafer fab – a joint project run by Tata Group and Taiwan’s Power Chip.
