Eyeing local innovations in chip production, semiconductor industry veteran Raja Manickam secured a $5 million fund for startup iVP Semi to develop testing facilities in South India.
Raja Manickam, founder of Tessolve and former CEO of Tata Electronics (OSAT unit), recently secured $5 million in pre-Series A funding for iVP Semi, a fabless semiconductor startup to localise chip production in India.
The industry veteran plans to use this capital to establish a presence in India, scale operations, and develop testing facilities. The startup will set up chip design centres in Chennai and Bangalore while licensing product IPs from Taiwan, Japan, and the US.
As an asset-lite company, iVP Semi will internally handle chip and module testing. It is working with the Tamil Nadu State Government to build its first 20,000 sq. ft. facility in Chennai, scheduled to be operational by October 2024. This facility will offer comprehensive design-to-testing capabilities and support, including discreet and power module testing, as well as reliability and safety certifications.
A second test facility is planned for another South Indian location. iVP Semi focuses on local industries such as renewables, EVs, and automotive, with revenue projections of $70 million to $100 million over the next two to three years.
Raja Manickam, previously instrumental in Tata Group’s semiconductor initiatives, parted ways with the company in early 2023 to establish the fabless chip company startup. His primary aim was to drive domestic demand for Indian-made electronics, believing that the country would be a major exporter of electronics in five years.
In an exclusive interview with EFY in November 2023, he disclosed that IVP Semi plans an initial investment of $20-$25 million and is optimistic about its role in India’s growing semiconductor industry.
At the funding announcement, S. Krishnan of MeitY praised iVP Semi for driving demand and filling manufacturing gaps, congratulating them on establishing an Indian fabless chip company.
The Indian Electronics and Semiconductor Association (IESA) also applauded Manickam on this occasion, expressing faith in iVP’s potential to drive innovation and growth in this country’s semiconductor sector.
Raja Manickam’s exclusive interview with EFY: “India Has Significant Demand, So Why Not Produce Indian Chips?”
