iVP Semiconductor: India’s First Fabless Chip Company Eyes $70 Million Revenue

The company was founded by P Raja Manickam, a seasoned expert in the semiconductor industry. Previously, he worked for the US giant Texas Instruments and later established and managed Tessolve Ltd, a company valued at ₹1,000 crores before it was sold to the Hero group.

Introduction

iVP Semiconductor Pvt Ltd is set to make history as India’s first fabless chip company. With an ambitious goal of achieving $70 million in revenue within the next few years, iVP Semiconductor is targeting the power sector, focusing on designing chips for solar inverters, smart grids, and two-wheeler batteries.

The company was founded by P Raja Manickam, a seasoned expert in the semiconductor industry. Previously, he worked for the US giant Texas Instruments and later established and managed Tessolve Ltd, a company valued at ₹1,000 crores before it was sold to the Hero group.

Fabless Model: Unlike traditional chipmakers, iVP Semiconductor doesn’t manufacture the chips itself. They design the chips and outsource the manufacturing process. This allows them to be more agile and focus on innovation.

Revenue Target: The company is targeting a revenue of $70-100 million in the next 3-4 years.

Funding: iVP Semiconductor has already secured $5 million in pre-Series A funding to support its expansion plans.

Focus Areas: The company plans to focus on chips for the power sector, including renewable energy, solar, and wind. They also see potential in electric vehicles and Internet of Things (IoT) devices.

Production and Testing: iVP Semiconductor is setting up a production test facility in Chennai to ensure high-quality products. They are also collaborating with the Tamil Nadu government for this project.

The company has already secured $5 million in pre-series A funding to support its growth plans.

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Pioneering Fabless Chip Design in India

A fabless semiconductor company designs chips and owns the intellectual property, while outsourcing the manufacturing, assembly, testing, and packaging processes.

This business model allows iVP Semiconductor to focus on innovation and product development without the substantial capital expenditure required for building and maintaining fabrication facilities.

The Visionary Behind iVP Semiconductor

iVP Semiconductor was founded by P Raja Manickam, a seasoned veteran in the semiconductor industry. Manickam’s impressive career includes a significant tenure at Texas Instruments, a US-based technology giant.

He later founded Tessolve Ltd, a company he successfully grew into a ₹1,000-crore enterprise before selling it to the Hero group.

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Funding and Ambitious Growth Plans

Manickam’s vision for iVP Semiconductor is to establish an Indian chip company that competes with global giants.

During a recent press conference, he announced the company’s target of reaching $70 million in annual revenues within three to four years.

The initial $5 million in pre-series A funding will be instrumental in achieving this goal.

“We are a chip company, not just a design company,” Manickam emphasized.

This statement underscores iVP Semiconductor’s commitment to owning and developing its products, distinguishing it from companies that merely provide design services.

Focus on the Power Sector

iVP Semiconductor is strategically targeting the power sector, which presents vast opportunities in India.

The company aims to design and produce semiconductor chips for electronics used in solar inverters, smart grids, and two-wheeler batteries.

This sector is rapidly expanding in India, driven by the country’s focus on renewable energy and energy efficiency.

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Competing with Global Giants

In its pursuit of the power sector, iVP Semiconductor will compete with established international companies like ST Microelectronics and Infineon Technologies.

However, Manickam believes that iVP Semiconductor has a unique advantage: its products will be designed specifically for the Indian market.

“Large MNCs do not have chips designed exclusively for India,” Manickam noted, highlighting the company’s local focus as a key differentiator.

Achieving Technological Autonomy

One of iVP Semiconductor’s primary missions is to achieve greater technological autonomy for India.

By developing and owning its semiconductor products, the company aims to reduce India’s dependence on foreign suppliers and enhance the country’s self-sufficiency in critical technologies.

This goal aligns with India’s broader strategic objectives and the government’s push for self-reliance in key industries.

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The Semiconductor Landscape in India

The semiconductor industry is broadly divided into three segments: design (creating electronic circuits), manufacturing (fabrication in a foundry where circuits are etched on silicon wafers), and assembly, testing, marking, and packaging (ATMP).

India has traditionally been strong in design capabilities but has lagged in manufacturing and ATMP.

Design Capabilities

India boasts a robust talent pool of engineers and designers, making it a global hub for semiconductor design.

Companies like Wipro, HCL, and Infosys have established themselves as leaders in this space, providing design services to global semiconductor giants.

Manufacturing (Fabrication)

India’s manufacturing capabilities in semiconductors are currently limited. However, the Tata group’s recent announcement of a ₹91,000 crore investment to build a semiconductor fabrication plant marks a significant step forward.

This facility will enhance India’s ability to produce advanced semiconductor chips domestically.

Assembly, Testing, Marking, and Packaging (ATMP)

In the ATMP segment, companies like Micron Technology and CG Semi are building facilities to bolster India’s capabilities.

These investments are crucial for creating a comprehensive semiconductor ecosystem in the country.

Government Support and Strategic Initiatives

The Indian government has launched several initiatives to support the semiconductor industry, including the DLI (Design Linked Incentive) and PLI (Production Linked Incentive) schemes.

These programs aim to encourage high-tech design and development and boost domestic manufacturing.

Design Linked Incentive (DLI) Scheme

The DLI scheme provides financial incentives to companies engaged in semiconductor design and development.

This initiative aims to attract global semiconductor companies to set up design centers in India, leveraging the country’s strong talent pool.

Production Linked Incentive (PLI) Scheme

The PLI scheme offers incentives to companies that establish semiconductor manufacturing facilities in India.

This program is designed to attract significant investments in semiconductor fabrication and assembly, helping to build a robust domestic industry.

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Why This Matters

Economic Impact

The establishment of iVP Semiconductor and the broader push for a domestic semiconductor industry are critical for India’s economic growth. The semiconductor industry is a high-value sector that can create thousands of skilled jobs and drive significant economic activity. By developing a domestic semiconductor industry, India can capture a larger share of the global value chain, reducing its trade deficit and boosting GDP.

Strategic Importance

Semiconductors are the backbone of modern technology, essential for everything from smartphones to renewable energy systems. By building its capabilities, India can enhance strategic autonomy. It can reduce reliance on foreign suppliers. This is particularly important now.Global supply chain disruptions are a concern. Geopolitical tensions also threaten access to critical technologies. iVP Semiconductor’s role is crucial in this context.

Technological Leadership

Developing a robust semiconductor industry will also position India as a leader in high-tech innovation. This can attract further investments in research and development, foster the growth of tech startups, and establish India as a key player in the global technology landscape.

The Road Ahead for iVP Semiconductor

iVP Semiconductor has strong leadership. It strategically focuses on the power sector. Government initiatives support the company. iVP Semiconductor is well-positioned for success.The company’s goal of achieving $70 million in revenue within the next few years is ambitious but achievable, given the growing demand for semiconductors in India’s power sector.

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Conclusion

iVP Semiconductor’s emergence as India’s first fabless chip company is a landmark development in the country’s semiconductor industry. iVP Semiconductor focuses on innovation. It aims for technological autonomy. The company addresses the specific needs of the Indian market. iVP Semiconductor will transform India’s semiconductor landscape.

As India continues to implement its DLI and PLI schemes and attract investments in semiconductor manufacturing and ATMP, the future looks promising for the country’s semiconductor industry. iVP Semiconductor’s success will be a testament to the potential of Indian innovation and the country’s ability to compete on the global stage.

Editorial Team
Editorial Team
Articles: 1925