A wave of semiconductor veterans from major firms like Intel, AMD, and Texas Instruments are leaving their posts to launch AI chip startups in India, aiming to capture a share of the rapidly growing global market.

Among them, four former Texas Instruments executives have founded C2i Semiconductors, focused on developing energy-efficient semiconductor products. The startup has raised $4 million in funding from Yali Capital and Intel board member Lip-Bu Tan, according to Tracxn. C2i recently secured support from India's government-backed design-linked incentive (DLI) program and remains in stealth mode.

Bodhi Computing, founded by Intel alumni Sambit Sahu and Raghuraman Barathalwar, was acquired by Indian AI firm Krutrim. The duo now lead Krutrim's semiconductor division, which is developing its first AI chip, Bodhi 1, set to launch in 2026, followed by Bodhi 2—designed for training and inferencing—in 2028.

Meanwhile, four ex-Intel and AMD engineers have launched Agrani Labs in Bengaluru, working on domestically designed AI chips for the global market. The startup is also operating in stealth and is reportedly in talks to raise $8 million from Peak XV Partners.

These founders typically bring 15–20 years of experience in chip design and systems engineering. Their ventures highlight India's growing semiconductor ambitions, fueled by government initiatives such as the DLI scheme and a broader push to establish semiconductor hubs across the country.

India has emerged as a key global center for chip design, producing talent for companies like Intel, AMD, and Texas Instruments over the past four decades. "India is now the second-largest chip design hub for U.S., South Korean, and Japanese companies," said Ganapathy Subramaniam, managing partner at Yali Capital and a former Texas Instruments executive. "The pandemic exposed the need for self-reliant supply chains, and we are now seeing real momentum."

Investor interest has extended beyond AI-focused startups. Mindgrove Technologies raised $8 million from Peak XV and others, InCore secured $3 million from Peak XV, and Agnit Semiconductors raised $4.87 million from 3one4 Capital.

Still, scaling up hardware manufacturing in India remains a major challenge. "India depends heavily on imports—especially from China—for critical components," said Tarun Pathak, research director at Counterpoint Research. "Cost competitiveness and supply chain scale are significant hurdles."

While policy support is encouraging, Pathak noted that global OEMs have entrenched supply networks, and shifting that landscape will take time. Nonetheless, India's growing pool of engineering talent and startup momentum signal an important evolution in the global semiconductor ecosystem.