The Karnataka government has already invested Rs 21.5 crore for development of the lab; it plans to increase its investment to around Rs 56 crore in the next five years to expand the facility
The Indian Electronics and Semiconductor Association (IESA) on Monday opened a Semiconductor Fabless Accelerator Lab (SFAL) in Bengaluru in collaboration with the Government of Karnataka.
This lab will be a first-of-its-kind initiative in the semiconductor space in the country, IESA said in a press release. With this lab, IESA is hoping to create a strong infrastructural support structure to incubate early-stage startups and accelerate the existing fabless SMEs by providing access to funds, market and mentors.
The aim, as per IESA, is to incubate at least 20 early stage fabless start-ups in the next three years and 50 in the next five years.
Through SFAL, IESA is also expecting to create more jobs in the electronics system design and manufacturing (ESDM) sector.
Rajesh Ram Mishra, President, IESA, said, “The facility is equipped to give Indian fabless start-ups and SMEs access to state-of-the-art R&D infrastructure to develop IP and chips, thereby, reducing the entry barrier. Our aim is to incubate 3-4 companies in the new facility by March 2019.”
Karnataka Government plans to invest more in the facility
Unveiling the lab, Karnataka Minister for Large & Medium Industries K.J. George said the state government has already made an investment of Rs 21.5 crore and would be spending more to touch Rs 56 crore in the next five years
“Our vision is to make Karnataka the hub around which the next breed of Indian fabless startups can thrive and accentuate the other fabless companies into the next realm of growth. Along with IESA, we will propel the ESDM sector and support innovative domestic companies,” added George.
The IESA is projecting creation of about 800 jobs for skilled engineers with the help of this lab.
The lab is also expected to enable production of domestic chips for local market by helping fabless startups to design chips for products like energy meters, LED lighting, smart cards, rural broadband and Internet of Things (IoT) solutions.
The IESA report at Vision Summit 2018 established that the Indian semi-conductor component market is estimated to see a huge market growth of 32.35 billion by 2025, growing at a CAGR of 10.1 from 2018 to 2025, the release added.