From Chip Talent to Chipmaker: NetraSemi Bets on India’s Semiconductor Future

For years, India has been known as one of the world’s largest suppliers of semiconductor talent. Engineers trained in India have helped design chips that power products ranging from smartphones to data centres. However, the chips themselves have largely been built elsewhere.

Now, some founders believe that it is beginning to change.

One of them is Jyothis Indirabhai, CEO and Co-Founder of Netrasemi Private Limited, a Kerala-based semiconductor startup that recently achieved a major milestone with the successful silicon bring-up of its flagship Edge AI chip, the A2000.

Backed by investors including Anil Joshi and Zoho Corp, NetraSemi is building chips designed to perform real-time AI inference directly on devices rather than relying entirely on cloud infrastructure.

The launch comes at a time when enterprises are increasingly seeking lower inference costs, reduced latency, and greater on-device intelligence.

For Indirabhai, the significance of the moment goes beyond a single chip. “Earlier, semiconductors were seen as just another technology. We never considered it a foundational technology for product making from India,” he tells AIM.

According to him, India’s perspective changed after supply chain disruptions and chip shortages exposed how dependent modern economies had become on semiconductors.

“We realised that without semiconductors, you don’t have an edge in the market. It is not just an economic issue but also a strategic one,” he says.

Why NetraSemi Bet on Edge AI

While much of the AI industry has focused on large cloud infrastructure and GPUs, NetraSemi chose a different path.

The company focused on Edge AI, where intelligence runs closer to where data is generated inside cameras, robots, industrial systems and connected devices.

Indirabhai believes this shift is inevitable. “AI initially moved to servers and cloud because that was the only practical option. But wherever you need real-time processing, privacy and fast response, AI has to move closer to the source,” he explains.

The A2000 chip is a multi-TOPS Edge AI application processor built on an advanced 12nm process node and designed to run AI workloads directly on devices rather than in the cloud. According to NetraSemi, it is among the first AI/ML processors developed in India and combines AI processing, computer vision capabilities and video analytics acceleration on a single chip. Built using the company’s in-house AI and vision intellectual property (IP), the processor is designed for applications such as AI-powered surveillance cameras, intelligent video gateways and Edge AI boxes.

Unlike cloud-based AI systems that require data to be sent to remote servers for processing, the A2000 performs inference closer to where data is generated. This can help reduce latency, lower bandwidth requirements and cut operational costs for enterprises deploying AI at scale. The chip also incorporates vector-processing capabilities that allow it to handle complex vision and AI workloads, efficiently positioning it to benefit from the growing demand for on-device intelligence across robotics, industrial automation and smart infrastructure.

As organisations seek ways to reduce cloud dependency and inference costs, Edge AI is emerging as an increasingly important part of the global AI stack.

“We always knew there would be a requirement for bringing AI closer to devices. Based on how Edge AI is becoming mainstream, we feel it was one of the best decisions we made,” he adds.

Building Silicon Before Building Chips

Unlike many chip startups that assemble existing intellectual property blocks into products, NetraSemi spent years developing its own semiconductor IP.

The journey began nearly eight years before the company formally launched. “We did not want to create just one chip. We wanted to build the underlying IPs first and then create multiple chips from that foundation,” Indirabhai says.

He notes that the long-term approach meant slower progress initially but ultimately created a stronger technology base. Today, the A2000 is only one part of NetraSemi’s roadmap. The company is also developing the R1000 AI microcontroller and the A4000 Edge AI server chip.

Together, they form what NetraSemi hopes will become a broader portfolio of Indian-designed AI silicon.

The Funding Challenge in Deep Tech

Building semiconductor companies requires patience that many startups rarely get.

According to Anil Joshi, Managing Partner at Unicorn India Ventures, access to capital is no longer the biggest challenge.

“The bigger issue is when that capital becomes available. Today, if a company has successfully built a chip, investors will line up,” he says.

What was missing earlier, he adds, was access to capital at the earliest stages, when founders had only an idea and were beginning their development journey. Semiconductor startups often require eight to 12 years to reach commercial milestones, making them difficult investments for traditional venture funds.

For investors, timing becomes critical.

“We look for companies that have already built strong IP and are capable of rolling out products within a few years. That creates a better balance between innovation and fund timelines,” he explains.

For NetraSemi, he notes, alignment arrived at the right moment. Government initiatives such as the Design Linked Incentive (DLI) scheme reduced entry barriers, while investors, including Unicorn India Ventures and Zoho backed the company’s vision.

The startup has raised around ₹125 crore so far, including participation from both Unicorn India Ventures and Zoho.

Building India’s Semiconductor Ecosystem

Both Indirabhai and Joshi believe India’s semiconductor story is still in its early stages.

What gives them confidence is the growing alignment between founders, investors and policymakers.

“There is a strong intent today from the government side. Semiconductors are no longer viewed as optional. They are being recognised as a critical part of India’s technology future,” Indirabhai says.

Joshi, on the other hand, believes the next major milestone will be enabling companies to complete more of the semiconductor development cycle inside India.

“My happiest moment would be when companies like NetraSemi can tape out their first silicon entirely within the country without depending on facilities abroad,” he adds.

India’s semiconductor ambitions have existed for decades, but many of them have remained confined to policy discussions. NetraSemi’s A2000 may not immediately transform the industry, but it represents something increasingly important: execution and technological self-reliance in the AI era. That shift could be far more significant than any single chip launch.