'Designed in India' 5G chip facing fund crunch, low commercial uptake

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Last Updated04/12/2024

A first of its kind ‘designed in India’ 5G and Internet of Things (IoT) chip, which has been allocated funding of close to Rs 45 crore by the Indian government, is facing mass production issues owing to a lack of funds.

The Narrow Band IoT (NB-IoT) chip, India's first indigenously designed 3GPP-compliant modem system-on-chip (SoC), is grappling with mass production challenges due to funding shortages and lack of commercial orders.
Developed by WiSig Networks, a startup incubated at IIT Hyderabad, this chip marks a significant milestone in India’s push towards self-reliance in semiconductor design.

Target Application: Primarily designed for smart meters in the electricity distribution sector.
Fabrication Technology: Utilized the 40-nanometer process of Taiwan Semiconductor Manufacturing Company (TSMC).
Collaboration: WiSig Networks partnered with Hyderabad-based Cyient for the tapeout process.
Testing: Successfully completed 3GPP-compliant and drive testing on Reliance Jio’s NB-IoT network at IIT Hyderabad.

Despite funding of ₹45 crore from various government schemes, including ₹40 crore from the Department of Telecommunications’ (DoT’s) 5G testbed project, WiSig Networks faces a shortage of capital to complete production activities.
The lack of confirmed orders hinders the completion of the 12,000-unit production tapeout and the development of production test programs.
Suggestions include mandating the use of domestically designed chips in smart meters procured by electricity distribution companies (discoms) to boost commercial uptake.

Part of a $10 billion incentive for the semiconductor ecosystem, introduced in December 2021.
Aim: To support the development and deployment of semiconductor design for integrated circuits, chipsets, and system-on-chip over five years.
Approved chip design proposals from 12 startups, with ₹130 crore committed to projects worth ₹342 crore.
₹7 crore released so far, with more applications under review.

Creating domestic intellectual property (IP) in chip design reduces reliance on foreign entities and enhances security in sensitive sectors.
Indigenous chip-making capabilities complement India’s existing strength as a hub for chip design services provided to global companies.
Introducing design-linked manufacturing schemes for locally made products like smart meters can further stimulate demand for Indian-designed chips.

Bridging the financial gap for startups to transition from prototypes to volume production.
Mandating the use of indigenous chips in government and public sector procurements.
Strengthening partnerships between academia, startups, and established industries to commercialize innovations effectively.