Saturday, 13 December

Saturday, 13 December2025

Indian Fabless Semiconductor Startups Face Funding Challenges Amid High Prototype Costs

Indian Fabless Semiconductor Startups Face Funding Challenges Amid High Prototype Costs
Indian fabless semiconductor startups encounter a "chicken and egg" dilemma: securing investor interest requires a working silicon prototype, but developing such prototypes demands substantial capital. Industry experts estimate that bringing a chip prototype to market costs around $7 million (approximately ₹60 crore), a significant hurdle in India's nascent chip innovation landscape. Venture capitalists often hesitate to invest due to the high costs and extended development timelines.

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