India has long been a hub for 20% of the world’s chip designers, yet it has struggled to make a mark in the global semiconductor arena. Recently, the Indian government’s investment initiatives have started to pave the way for a significant shift in this sector, particularly as companies worldwide pursue a “China-plus-one” strategy to diversify their supply chains.
Amid this backdrop, BigEndian Semiconductors is gearing up to leverage this opportunity by developing state-of-the-art surveillance chips designed specifically for cameras.
Founded in May and headquartered in Bengaluru, this fabless design startup is spearheaded by CEO Sunil Kumar, whose impressive career includes tenures at ARM, Broadcom, and Intel. The founding team, with rich experience from major chipmakers like Broadcom and Cypress Semiconductors, shares a longstanding professional history of 25 years.
Kumar elaborated in an interview with TechCrunch that the decision to launch BigEndian was fueled by a notable domestic market demand: approximately 50 million surveillance cameras, valued between $4 to $5 billion annually. This burgeoning need is coupled with government incentives aimed at fostering semiconductor development and a clear customer demand for alternatives to China-made products.
“If we don’t do it, this generation will fade away. There’s no one else with the experience to cover the entire cycle,” Kumar remarked.
The Indian government has earmarked a substantial budget of $9 billion to enhance local semiconductor and display manufacturing capabilities. Already, the Modi administration has approved the establishment of four semiconductor production units within the country. These facilities are expected to manufacture chips for diverse applications, including automotive technology, consumer electronics, electric vehicles, and telecommunications. The estimated investment for these units is around $17.9 billion, with a projected production capacity of about 70 million chips daily.
Initially, BigEndian will focus on the development of surveillance chips in partnership with the Taiwanese foundry, UMC. Their first reference chip, based on a 28nm node process, is set to debut in the first quarter of 2025. Moreover, the startup aims to expand its market footprint into the broader IoT sector, particularly targeting 16-bit and 32-bit microcontroller segments.
In contrast to traditional fabless semiconductor enterprises, BigEndian is innovating a platform-as-a-service model that empowers governments to evade the prevalent reliance on Chinese middleware in existing surveillance solutions. This novel approach will integrate software solutions, enabling manufacturers and customers to personalize the functionalities of their surveillance systems, ultimately generating additional revenue through subscription-based enhancements.
“India consumes around a billion of these chipsets every year,” Kumar noted. “However, these are typically priced between $0.50 and $1 each. As for the emerging automotive market, a significant number of 32-bit controllers are now being utilized. That said, we can’t tackle every market segment immediately due to funding challenges in India.”
To kickstart its operations, BigEndian has successfully raised $3 million during an all-equity seed funding round, spearheaded by Vertex Ventures SEA and India. While this seed capital may not suffice for large-scale orders typical for fabless semiconductor startups, Kumar emphasized that the Indian government’s supportive initiatives provide a significant boost, effectively making it feel like they have raised $5 million.
Given the historical context where India has not yet experienced a substantial semiconductor success story, Kumar expressed the daunting prospect of securing investment at this stage. “In the U.S., we could potentially raise around $12 to $15 million, but that’s not feasible here. You need to navigate your limitations, which poses challenges. This also serves as a barrier to entry for us and other potential competitors, ” he added.
The funding round also featured contributions from strategic investors such as Amitabh Nagpal, head of startup business development at Amazon Web Services, paving the way for future funding opportunities.
Looking ahead, BigEndian aims to transcend the Indian market with its surveillance chip offerings, which are designed for a wide range of middle to lower-end cameras. Kumar concluded, “Our goal is to establish a strong foothold, demonstrating to the market that an Indian silicon company can thrive and ascend the industry ladder instead of starting from the top.”