From cameras to cars, India’s chip startups chase an edge in AI

India's chip startups are racing to develop specialized artificial intelligence (AI) chips designed for various devices, including cameras, cars, and other electronics. These chips, known as edge AI chips, process data locally, eliminating the need for constant cloud connectivity. Pratik Parmar, founder of Atomo, explained that their circuit board enables cameras and machines to detect fires, count people, or identify factory defects without relying on internet cloud services.

The Indian government has launched a chip-design program that has granted 105 startups and small businesses access to advanced design tools, resulting in around 35 chip designs ready for manufacturing. While India is relatively late to the AI chip design race, experts believe the country still has potential to compete by focusing on integrating intelligence into everyday electronics.

Industry leaders argue that India's edge in AI chips lies in tailoring intelligence for specific devices and tasks, rather than merely developing the fastest processors for data centers. Ashok Chandak, president of SEMI India and the India Electronics and Semiconductor Association, emphasized that software, scale, and customer adoption present the biggest challenges.

As India's semiconductor market is expected to triple from US$64 billion in 2026 to US$200 billion by 2035, AI systems increasingly require local processing for faster responses and uninterrupted operation, especially when internet connectivity is unreliable or unavailable. Indian chip designers are targeting this growing market, driven by the potential to customize chips for individual industries and overcome the limitations of relying on foreign processors.