According to the founding managing partner, Celesta Capital, and India Deep Tech Investment Alliance (IDTA) lead, allocation under the new $1 billion IDTA has not been fixed, but semiconductors and artificial intelligence (AI) infrastructure are expected to attract a major share.
Launched on September 2, 2025, at Semicon India 2025, the IDTA aims to mobilise private capital and expertise for deep tech companies while fostering US-India collaboration in sectors such as semiconductors, AI, and space. Backed by venture capital and private equity firms from both countries, the alliance begins with an initial capital commitment of $1 billion.
Going forward, its focus will extend to quantum, robotics, biotech, medtech, energy, and the digital economy.
With growing demand from electronics, automotive, and AI data centres, along with a maturing supplier base in outsourced semiconductor assembly and test (OSAT), assembly, testing, marking and packaging (ATMP), and specialty materials, India is well positioned to benefit from policy support through the India Semiconductor Mission (ISM) and production- and design-linked incentives.
Further, the managing partner stressed the importance of greater clarity in areas such as cross-border operations, talent incentives, intellectual property (IP) protection, and public procurement. He also underlined the need to scale applied MTech/MS programmes in analogue/ radio frequency (RF), reliability, packaging, and process control through industry-linked curricula.
Furthermore, he suggested funding test labs that startups can rent by the hour and expanding access to electronic design automation (EDA) tools and compute credits. While ISM’s nationwide EDA training programme was described as a step in the right direction, he said it must be paired with hands-on tape-out experience.
India’s ambition to evolve from a chip design hub into a full-stack semiconductor player is realistic if the country can bridge gaps in talent, partnerships, and policy clarity, he added.
