One of the newest additions to India's growing fabless startup scene is Chennai-based iVP Semi, founded by semiconductor veteran Raja Manickam. In a recent interview with Digitimes Asia, Manickam detailed how iVP sets itself apart from the competition.
"The biggest difference is the market," said Manickam, who is also the CEO of the company. "Most fabless startups in India cater to the external market, whereas I'm targeting the Indian market. I also feel that the value creation that I can bring to the Indian market is better than any foreign companies trying to do business in India."
Manickam explained that he is starting with basic products, similar to practices seen in China and Taiwan. This foundational approach will allow the company to build expertise, learn marketing strategies, and establish a market presence before progressing to more complex chip designs, which require extended development times.
"A significant challenge in India is that there are very few system companies," Manickam added. "Engaging these companies and interacting closely with customers will be crucial, as understanding customer needs is key to successful product development."
The company has raised $5 million in pre-Series A funding to expand its presence in India, scale operations, establish testing facilities, and launch marketing campaigns.
Targeting critical verticals
iVP Semi's operations in India will primarily support the local renewable energy, electric vehicle, and automotive industries. The company projects to achieve revenues between $70 million and $100 million within the next two to three years.
"Renewable energy is a key focus for the government as it looks to replace fossil fuels," Manickam said. "India is one of the fastest-growing countries in terms of renewable energy consumption. This shift toward renewable energy requires extensive electronics for solar cells, storage, and other components, positioning this sector as a prime market for simple, long-term product strategies."
In the EV market, the main focus for iVP Semi would be chargers and storage. Manickam noted that the two- and three-wheeler market, less regulated compared to four-wheelers, presents a substantial opportunity for replacing traditional engines with electric systems. The company is also interested in the Industrial IoT segment.
iVP Semi is currently creating a product catalog and anticipates completing it by the end of the year. At present, they are sampling some of the parts, using fabs located in Taiwan and Japan. Their customers are actively collaborating with them to determine which parts they need.
Design centers and production facilities
The company is establishing chip design centers in Chennai and Bangalore, and is licensing product IP from entities in Taiwan, Japan, and the US. Operating as a fabless company, iVP Semi will conduct chip and module testing in-house.
In collaboration with the State Government of Tamil Nadu, the company is setting up a 20,000 sq ft production test facility in Chennai. It is also planning an additional facility in another location in southern India.
The Chennai facility is expected to be fully operational by October 2024 and will offer comprehensive services from design to testing. It will include discrete and power module testing, as well as reliability and safety certification centers, aimed at reducing the time to market for its products.
Importance of Taiwan model
Meanwhile, India's efforts to establish a semiconductor manufacturing ecosystem are progressing, with major companies like Tata already receiving approval for fab projects.
Manickam noted that despite initial skepticism, there are now many positive developments. He recommended that India could learn from Taiwan's approach in this industry.
"The Taiwan model, I think, is what India should follow," said Manickam. "It's a very homegrown, generic model. All the large semiconductor companies in Taiwan, like TSMC, ASE, or MediaTek, are Taiwanese companies. They are homegrown, large, and relevant."
