Where the chips fall into place: Gujarat startups power India's semicon dream

Time of India

26-05-2025

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AHMEDABAD: As multibillion-dollar semiconductor plants rise in Sanand and Dholera, a parallel, quieter revolution is underway — one powered by Gujarat's ambitious tech startups, in the chip design and embedded systems arena.
Gujarat's ambitious semiconductor journey, barely two years old, is already accelerating at an impressive pace. Bolstered by proactive policies, major investments and ongoing plant constructions, Gujarat is already home to 30-odd startups that directly or indirectly contribute to the growing semiconductor ecosystem here.
A case in point is Marmik Bhatt, an MBA who couldn't find an integrated chip for his project back in 2014.
Necessity thus became the inflection point of his decade-long journey. 'In 2016, I did the first deposition and etching at nanoscale and two years later achieved 350 nanometre (nm) scale. After the pandemic, we established one of India's first homegrown commercial pilot and R&D fabs,' said Bhatt, founder of Rajkotbased Monk Tech, which is presently incubated at IIT Delhi and IIMA Ventures.
'We have a 2,000 sq ft clean room in Rajkot, and are scaling up this year.
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We intend to supply 1% of the global demand for 130nm chips. India has so much demand that even if several such facilities come up, they will all find business".
Bhatt is one of the young startup founders betting on the development of a strong semiconductor ecosystem in Gujarat. Several startups are now associated with various aspects of the technology, primarily design and consultancy.
Another example is Ahmedabad based IndieSemic, which began operations in April 2023.
The startup is developing advanced radio frequency (RF) modules for IoT applications and indigenous application-specific integrated circuit (ASIC) solutions. Co-founded by Nikul Shah, who has nearly a decade of experience in semiconductor design services, IndieSemic aims to build globally competitive, locally designed hardware for sectors such as smart cities, industrial automation, automotive and surveillance.
'We design modules that connect electronic devices to the external environment,' said co-founder Jinal Shah. 'We have partnered with a European semiconductor company to facilitate chip manufacturing in India and currently offer 15 SKUs of RF modules. We are also in talks with packaging companies setting up in Gujarat to supply our products.' IndieSemic has also been selected under the ministry of electronics and information technology's design-linked incentive (DLI) scheme to design a system on chip (SoC).
For Samir Shroff, founder of Pronesis Technologies, the drive to contribute to his homeland brought him back to India after over a decade in Silicon Valley with leading tech companies. His company specialises in semiconductor design and ASIC development. 'Ahmedabad being my native place became my first choice. When I returned in the 1990s, eInfoChips was the only player in this segment, and I worked there for four years in a senior role before founding my own venture.
So far, I have established three companies, ' said Shroff.
He highlighted Gujarat's strong growth potential in semiconductors, citing opportunities to train new engineers and the relatively low costs for setting up industry here. 'Success might take a while, but the current dynamics suit the region,' he added.
Experts note that many of these startups benefit from international collaborations and market exposure in hubs like China and Taiwan, further strengthening Gujarat's semiconductor ecosystem.
Silicon route runs through Sanand, Dholera
Sanand and Dholera have evolved as key nodes on India's semiconductor map.
Sanand now hosts four major players: Micron Technology, CG Power, Kaynes Technology, and the latest entrant, Taiwan's TSMT Electronics, which acquired 50,000 sq m of land to set up a Rs 500 crore electronics manufacturing facility recently.
Meanwhile, Tata Group's Rs 91,000 crore investment to establish India's first semiconductor fab in Dholera marks a defining moment for the region.
Together, these developments position Gujarat at the forefront of India's semiconductor ambitions. However, experts note that to sustain this momentum, the state must prioritise supporting infrastructure, including urban planning, housing, social amenities and a dependable local supply chain.
There's more room to grow
Experts believe that while Gujarat's startup momentum is encouraging, the scale still has room to grow.
'From eInfoChips alone, one of the earliest players in this space, nearly 20 startups have spun off in the past two decades, tackling various aspects of embedded and semiconductor tech,' said Nilesh Ranpura, director (engineering) at eInfoChips and a core member of the Indian Electronics and Semiconductors Association (IESA)'s Gujarat chapter.
'Globally, ecosystems in the US and Taiwan grew rapidly because allied startups pushed the tech forward."
Ranpura points to a startup founded by a former Intel engineer that now builds chips tailored for CCTV cameras — an area still dominated by Chinese firms. 'At IESA, we are working to ensure that at least 2–3 new semiconductor startups emerge each year from Gujarat,' he said.
To catalyse this, IIMA Ventures recently hosted a focused track for startup founders and investors in semiconductors, drawing stakeholders from the Gujarat govt, IESA, venture funds and incubators.
The incubator has also released a sectoral thesis to guide emerging ventures.
'We engaged deeply with founders and experts to identify white spaces in sub-segments such as compound semiconductors, quantum computing and domain-specific architectures,' said a senior partner at IIMA Ventures.
Prof Satya Ranjan Acharya, director of EDII's incubator Cradle, emphasised that while Gujarat's deep tech story is still young, the trajectory is promising. 'It's a long-gestation sector, and while it may take time to mature, the policy push and growing founder base show immense potential. The past two years alone reflect phenomenal early-stage growth,' he said.