India, despite having a considerable number of chip designers, has not made a significant mark in the global semiconductor market. However, recent developments show promise as the Indian government has started investing in initiatives to establish the country as a key player in the semiconductor industry. This push comes as companies worldwide are looking for alternatives to China, adopting a “China-plus-one” strategy.
One of the companies aiming to capitalize on this shift is BigEndian Semiconductors, a fabless design startup based in Bengaluru, India. Founded in May, the company is led by CEO Sunil Kumar, a seasoned executive with experience at ARM Broadcom, and Intel. The founding team also includes members with backgrounds in chipmakers like Broadcom and Cypress Semiconductors. The decision to establish the startup came after identifying significant domestic demand for surveillance chips for cameras, amounting to about 50 million cameras worth close to $4-$5 billion annually.
The Indian government has allocated a budget of $9 billion to boost local semiconductor and display manufacturing companies. As part of this effort, the Modi government has approved the establishment of four semiconductor units in the country to produce chips for various applications such as automotive, consumer electronics, EVs, industrial, and telecom. These units are projected to attract an investment of approximately $17.9 billion and have the capacity to produce around 70 million chips per day.
BigEndian Semiconductors initially plans to develop surveillance chips in collaboration with a Taiwanese fab company, UMC. The startup’s reference chip, based on a 28nm node process, is expected to be available in the first quarter of 2025. Moreover, the company aims to expand its presence in the IoT market, particularly focusing on 16- and 32-bit microcontrollers. Unlike traditional fabless semiconductor companies, BigEndian is working on a platform-as-a-service model to provide customization options for surveillance cameras and software solutions, thereby enabling customers to tailor their camera functionalities.
Despite raising $3 million in an all-equity seed round led by Vertex Ventures SEA and India, BigEndian faces funding challenges common to semiconductor startups in India. CEO Sunil Kumar highlighted the constraints of the Indian market, stating that raising larger amounts of capital, as seen in the U.S., is not feasible. However, strategic investors such as Amitabh Nagpal from Amazon Web Services are optimistic about the startup’s potential, which could lead to more significant investments in subsequent funding rounds.
Looking ahead, BigEndian Semiconductors aims to position itself beyond the Indian market, targeting a wide range of middle to lower-end cameras with its surveillance chips. The company’s strategy is to establish a strong foothold in the market gradually, proving that an Indian silicon company can compete and eventually scale up. CEO Sunil Kumar emphasized the importance of building credibility and gradually moving up the value chain.
BigEndian Semiconductors represents a promising addition to India’s semiconductor landscape, with its strategic focus on surveillance chips and innovative platform-as-a-service model. As the company navigates funding challenges and expands into international markets, its success could pave the way for India to establish a stronger presence in the global semiconductor industry.
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