The Indian Electronics and Semiconductor Association (IESA) on Monday opened a fabless laboratory in Bengaluru to incubate early-stage startups for Processor designing and make small and medium enterprises (SMEs) to access funds and enter the market.
“The lab is aimed at incubating 20 early stage fabless startups in 3 decades and 50 in the next five years for chip designing and create jobs in the electronics system design and production (ESDM) sector,” explained IESA president Rajesh Ram Mishra.
Unveiling the laboratory, Karnataka Minister for Large & Medium Industries K.J. George said the state government had invested Rs. 21.5 crore in the facility and would spend an extra Rs. 56 crore in expanding over the next five years.
“Our vision is to make Karnataka the hub round which another breed of Indian fabless startups can thrive and accentuate another fabless companies into the next realm of growth. Along with IESA, we will propel the ESDM industry and support innovative domestic companies,” explained George in the lab inaugural occasion.
The IESA estimates creation of about 800 jobs for skilled engineers as a consequence of setting up the lab.
Fabless fabricating is the design and sale of all hardware devices and semiconductor processors while outsourcing the manufacture of the devices to a specialised maker called a semiconductor foundry.
The laboratory is expected to empower domestic chips for local market and permit fabless startups to design chips for products like energy meters, LED lighting, smart cards, rural broadband and Web of Things (IoT) solutions.
“Our intent is to incubate 3-4 businesses in the new centre by March 2019. The lab fills a critical gap in our ESDM ecosystem which will prepare us as a nation to capitalise on the tendencies unleashed by electronic equipment,” Mishra added.
An IESA report launch at its Vision Summit in February said that the Indian semiconductor element market is projected to see substantial market increase of $32.35 billion (roughly Rs. 2.25 lakh crores) by 2025.