Monday, 7 April, 2025

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.