iVP Semi, a newly launched fabless semiconductor startup by Raja Manickam, secures $5 million in Pre-Series A funding to expand its operations in India.
The startup, focused on designing semiconductors and owning intellectual property (IP), has raised $5 million from undisclosed investors. These funds will primarily be allocated towards establishing testing facilities and enhancing presence in India. iVP Semi plans to set up chip design centers in Chennai and Bengaluru, leveraging licensed product IP from Taiwan, Japan, and the US. Unlike traditional models, the startup will conduct internal chip and module testing, positioning itself uniquely in the market.
Raja Manickam emphasized iVP Semi’s mission to localize semiconductor production in India, empowering local companies with improved product development cycles and technological autonomy. By establishing a robust chip supply chain, the startup aims to foster a supportive environment for semiconductor ecosystem partners to establish local operations.
In collaboration with the Tamil Nadu government, iVP Semi is set to inaugurate a 20,000 sq. ft. production test facility in Chennai by October 2024, offering comprehensive design, testing, and certification capabilities. Additionally, plans are underway to open a second testing unit in South India, further bolstering its operational footprint.
Targeting clients in renewable energy, electric vehicles (EVs), and automotive sectors, iVP Semi anticipates generating $70 million to $100 million in revenue over the next two to three years.
MeitY Secretary S Krishnan acknowledged iVP Semi’s role in stimulating demand for semiconductor manufacturing capacity in India, echoing government efforts to attract investments from global giants like Tata Group and Micron Technology.
Amidst increasing demand fueled by GenAI adoption and electronics growth, iVP Semi enters a burgeoning semiconductor market expected to reach $150 billion by 2030. The startup aligns with global trends where companies like Nvidia and Qualcomm focus on R&D while outsourcing production.
iVP Semi’s strategic funding and expansion plans underscore its commitment to bolstering India’s semiconductor ecosystem, contributing to the country’s emerging role in global semiconductor manufacturing.
