Founded in 2020, FermionIC aims to make India self-reliant in the domain of electronics, especially homegrown chips designed for X-band communication for active electronically scanned arrays, satellite communication applications, and more
FermionIC recently raised $6 Mn in a funding round led by Lucky Investment Managers’ Ashish Kacholia and his associates.
In the short term, FermionIC plans to incorporate a wholly-owned subsidiary in the US. FermionIC is also eyeing Australia and the EMEA region, where it plans to expand via partnerships with other companies.
The demand for radio frequency (RF) chips is rising globally due to their growing applications in defense, the need for faster and more sophisticated telecommunication systems, and increasing satellite communication requirements.
However, much like the broader electronics manufacturing sector, India remains heavily reliant on importing semiconductor chips used in radar systems, 5G telecommunications and similar applications.
Despite its efforts to reduce dependence on imports, India’s imports of electronics, telecom and electrical products soared to a massive $89.8 Bn in FY24, according to a report by the Global Trade Research Initiative (GTRI)Notably, China and Hong Kong accounted for a substantial 56% of India’s total imports in this area.
The report also suggests that the integrated circuits (ICs) witnessed a significant import surge of 2,415.1% from $166.1 Mn in 2007-2010 to $4.18 Bn between 2020 and 2022.
While it is hard to predict by when India will become semiconductor self-reliant, the burgeoning semiconductor and electronics market does present a promising outlook for the future.
Amid this, Bengaluru-based fabless semiconductor startup FermionIC Design is among the emerging players aiming to lead this shift (of reducing India’s dependence on imports) in the RF chips market.
Founded in 2020 by Gautam Singh, Prasun Bhattacharyya, Abhra Bagchi and Shabaaz Syed, FermionIC aims to make India self-reliant in the domain of electronics, especially homegrown chips designed for X-band communication for active electronically scanned array (AESA), satellite communication applications, and more.
Armed with a cumulative experience of over a century, working with Texas Instruments, OnSemi, Cadence, Cosmic Circuits, Qualcomm, Google and other tech giants, the founders aspire to rule over a significant portion of the global RF semiconductor market. projected to grow from $50.26 Bn by 2032 from $23.72 Bn in 2024.
Speaking with Inc42, FermionIC’s director and CEO Singh said, “The key driver in the semiconductor industry has always been communication. Whether it’s communication over wires or 5G or SATCOM. There are also other domains like power where people are developing chips for EV charging and others. Our ambition is to build RF chips from India and then serve the global market.”
FermionIC’s Game Plan
As highlighted above, the founders of the semiconductor startup have a cumulative experience of more than 100 years. They are adept at the entire life cycle of silicon development — from ideation of new product development to product delivery.
The startup is currently developing chips that are designed for more.
Besides, FermionIC has a portfolio of a few other chips, which include signal integrity chips and clock drivers. Though the RF segment remains the major focus of the company, other general-purpose chips help the startup cater to its customers who also want such auxiliary chips to be placed on top of the RF chips for different functions.
Meanwhile, FermionIC is building IPs. Its SERDES IP claims to help speed up data transfer between devices, which is crucial for faster communication. However, the startup has no plans to give the licensing of its IPs to other chip design companies.
FermionIC recently raised $6 Mn in a funding round led by Lucky Investment Managers’ Ashish Kacholia and his associates.
Its chips are GaN-based as these wafers make RF chips more efficient. The startup is getting its chips manufactured by GlobalFoundries.
FermionIC’s Revenue Plan
FermionIC is gearing up to generate revenue. It aims to bring to the market a full-stack IC-product portfolio superior to what the global giants have to offer. Notably, it faces stiff competition from global RF chipmakers like NXP Semiconductors, Qualcomm, and Analog Devices.
In the four years of its existence, FermionIC dedicated a significant amount of time analyzing the market requirements, gaps in existing products and building its beta customer base. The idea is to establish the market in advance so that it doesn’t struggle to sell its chips once its mass production begins.
“We have identified that the existing solutions from the large companies are more generic in nature. There are some performance gaps in these chips and I want to improvise those. The other thing is radars are a very complex system. So, we are trying to solve the performance of our customers – the original design manufacturers (ODMs) – while also bringing down the system design complexity,” Singh said.
FermionIC has started selling its chips in a small volume to its beta customers. Currently, it’s in discussion with its manufacturing partner and plans to begin large-volume production of the chips in three months.
“Our plan is to begin the production cycle by the end of the current fiscal year so that we can start shipping in the first half of next fiscal (FY26),” Singh said, adding the company already has several commitments from its customers.
However, the lead time in this industry is more than 36 weeks, he added. Once the purchase order is fully in place by the end of FY25, FermionIC aims to start generating revenue sometime in the next fiscal. The startup also plans to keep some inventory ready to cut this lead time by half.
The Road Ahead For FermionIC
The semiconductor industry is not only challenging but also demands patience. So far, FermionIC has only been able to develop its base technology, product, and market. However, in the coming years, it plans to expand its product line to cater to a bigger customer base.
In the short term, they have a wholly-owned US subsidiary on the cards. The startup sees a huge market opportunity in the US, even though the Indian market is expected to be its largest contributor in terms of sales.
Besides the US market, FermionIC is also eyeing Australia and the EMEA region where it plans to expand via partnerships with other companies in the near future. The startup sees at least 10% of its revenue from the global markets.
Moving on, the company plans to bolster its partnerships in India. For testing and packaging, it has partnered with outsourced semiconductor assembly and testing (OSAT) company, Kaynes Semicon,
FermionIC is also working closely with the Indian government. With its core technology in place, market opportunities largely gauged, and global go-to-market strategy also figured out, it remains to be seen if FermionIC would take up one of the key positions among other startups that are writing India’s semiconductor story.
As of now, the startup seems to have taken a significant step towards making India a semiconductor self-reliant nation, particularly in the critical RF chip segment.
With seasoned industry veterans at its helm, the startup appears well-positioned to make a mark in the competitive semiconductor market by addressing gaps in existing global solutions.
However, the road ahead is not going to be easy, especially when the larger market is dominated by established players with robust supply chains and significant investments.
To outdo giants like Qualcomm and NXP Semiconductors, FermionIC will require sustained financial backing and the ability to scale rapidly. Additionally, the heavy reliance on third-party manufacturing partners, like GlobalFoundries, may pose delivery challenges every now and then.
[Edited By Shishir Parasher]