Semiconductor startup Mindgrove eyes local chip packaging deals with Kaynes, CG Power; plans Tata fab tie-up

Mindgrove Technologies

Chennai-based fabless semiconductor startup Mindgrove Technologies is firming up its India play, holding talks with local Outsourced Semiconductor Assembly and Test (OSAT) providers such as Kaynes, CG Power and Tata for testing and packaging its system-on-chips (SoCs).

The company, which currently relies on Taiwanese major TSMC for chip fabrication, also plans to partner with Tata for local manufacturing once the conglomerate’s upcoming mega fab in Dholera, Gujarat, becomes operational, co-founder and CEO Shashwath T R told Moneycontrol.

“After the wafer is made at the foundry, it needs to be diced, packaged, and tested before being mounted on a board or sold as a module. India is now seeing several ATMP (assembly, testing, marking, and packaging) companies come up like CG Power, Kaynes, and Tata. We’re in discussions with such players,” he said.

A stronger domestic supply chain, Shashwath said, would cut costs and simplify operations. “Selling in India and globally is possible, but currently, market access is simpler when we work with Indian customers. One challenge, though, is payments—we spend in dollars but earn in rupees, hence we are keen to work with Indian partners.”

Once India's first foundry is established, Mindgrove will explore a partnership with Tata. For now, its microcontroller chips are manufactured at TSMC, and its upcoming “Vision SoC” camera-focused chip will also be produced there. “Local sourcing reduces time-to-market significantly. We’ll just need to balance capabilities with cost,” Shashwath added.

On the customer side, the startup has already signed a few deals and is in advanced talks with more OEMs, ODMs, and design houses. “Our target segments include biometrics, water treatment, industrial controllers, and consumer appliances. Some are in commercial appliances too—the kind you see in retail shops. Our discussions with some more clients are at the final signing stage,” he said.

Mindgrove recently inked a pact with Bosch Global Software Technologies (BGSW) to co-develop and deploy high-performance SoCs across automotive, consumer electronics, industrial automation, and IoT infrastructure. Calling Bosch an “excellent validation partner,” Shashwath noted, “There are cases where Mindgrove alone might not get a meeting, but with Bosch, doors open.”

While the company is in early talks with a few players for global expansion, its immediate focus is on the Indian market. “Geopolitically, it also makes sense—many Indian players want an Indian supply chain, so it’s a good time to work with them,” he said.

Mindgrove raised about $8 million last year, and in September also secured approval under the government’s Design-Linked Incentive (DLI) scheme, amounting to Rs 15 crore, for developing a new chip called “Vision SoC.”

“Without that funding, we wouldn’t be doing what we’re doing today. Semiconductors take a long time—whether you’re a mid-level or even larger company, the capital burn is huge. You need long-term investors who don’t expect returns in six months, but who can provide funding, guidance, and patience. The money required to even sit at the table is massive. Without that Series A and the DLI scheme, we couldn’t have moved forward,” Shashwath said.

On fundraising, he said the next round will depend on market conditions. “We’re going into volume production this year. If the chip performs really well, we’ll take one path; if it performs differently, we’ll adapt,” he said.

The company is targeting EBITDA-positivity by FY26–27, though margins will remain slim in the initial years. “This year’s revenues are hard to predict. Lead times are fluctuating a lot because of tariffs and supply chain issues. Sometimes we get paid before delivery, but we can’t recognize revenue until shipment,” Shashwath noted.