AGNIT says multiple defence chip pilots could enter volume production over the next year

Bengaluru-based AGNIT Semiconductors expects multiple pilot programmes for its gallium nitride chips to potentially move into volume production over the coming year, as defence customers complete field trials and seek orders from the armed forces.

The startup is working with customers across applications such as military radars, electronic warfare systems, drone jammers, radio links and satellite communications. Some of these programmes have already shown encouraging results in field trials, according to Hareesh Chandrasekar, CEO and co-founder of AGNIT Semiconductors.

Must read: India may need $80 billion in government incentives by 2035 to build semiconductor ecosystem

“We currently have multiple pilot programs underway, with some showing strong potential to transition into volume production over the coming year,” Chandrasekar told Business Today. The company expects production volumes to rise to between 5,000 and 10,000 chips over the next six to nine months.  

“We are running pilots with customers in the defence sector and have seen encouraging field trials on a couple of use cases,” Chandrasekar said.

“This should lead to volume ramp up as our customers prove their systems to the armed forces and receive orders in turn. The defence procurement cycle for these systems in turn determines procurement for Agnit’s GaN components from our customers,” he added.

Defence drives demand

Founded in 2019, AGNIT develops gallium nitride, or GaN, semiconductor technology. GaN is a material used to make chips that can handle more power and operate at higher frequencies than conventional silicon-based components.

These make the technology suitable for radar, communication equipment, and electronic warfare systems, where components must deliver high performance while remaining compact and energy-efficient.

AGNIT produces GaN wafers and epitaxial structures, the layers of semiconductor material on which chips are built, as well as radio-frequency devices, power amplifiers and evaluation boards used by customers to test the technology.

“In terms of demand, the strongest interest is currently coming from the defence sectors where applications such as advanced military radars, electronic warfare systems (drone jammers in particular), radio links and satellite communications require high-power, high-frequency components and where GaN offers significant advantages over traditional technologies,” Chandrasekar told Business Today.

Must read: Why are data centres planned in India facing a global risk of operational disruption?

The company had previously explored manufacturing components for electric vehicles but has paused those efforts to focus on strategic sectors where it sees stronger near-term demand for GaN technology.

AGNIT has also signed a memorandum of understanding with the Ministry of Defence to work on next-generation wireless transmitters under the Innovations for Defence Excellence, or iDEX, programme.

Transmitters are critical parts of radar and electronic warfare systems. They generate and send high-frequency signals that allow radars to detect objects or enable electronic warfare equipment to disrupt hostile communication and surveillance systems.

“Modern radar and electronic warfare systems require transmitters that can deliver higher power, operate at higher frequencies, and maintain performance in demanding environments,” Chandrasekar said.

“Traditional technologies often face limitations in efficiency, size and power handling. GaN addresses these challenges by enabling more powerful, efficient, and compact transmitter systems,” he added.

Building more in India

AGNIT describes itself as India’s first vertically integrated GaN semiconductor startup. According to Chandrasekar, vertical integration at AGNIT means controlling several stages of the process, from developing GaN materials and processing wafers to fabricating devices and designing complete radio-frequency and power subsystems.

Must read: India’s AI dream runs on a stack it does not control

Of the two chips currently being scaled, one is manufactured entirely in India. The second is produced at an external semiconductor foundry using AGNIT’s design.  

“Out of the 2 chips, one of these chips is fabricated completely in India while the other is taped out at external foundries based on Agnit’s design and also packaged, tested, qualified and assembled into modules in-house, with a clear roadmap to also move the GaN die manufacturing in-house within the next 10 months as well,” Chandrasekar said.

Earlier this month, AGNIT set up a new testing and qualification laboratory at the Indian Institute of Science in Bengaluru, investing Rs 3 crore in the facility.

The 350-square-foot laboratory will allow the company to conduct validation, reliability testing and qualification of its components internally. The facility is expected to support products for defence communications, telecom infrastructure, satellites and next-generation wireless networks, while reducing AGNIT’s dependence on external testing infrastructure.

Fresh capital for execution

AGNIT recently raised $2.6 million, or around Rs 24 crore, in an extension of its seed funding round led by Shastra VC. Existing investors 3one4 Capital and Zephyr Peacock also participated.

The company had previously raised $3.5 million in its seed round in 2024 and has raised more than $7 million in total funding so far.

Must read: From Mumbai to Jamnagar: India's data centre map is rapidly expanding, shows report

Chandrasekar said the latest capital will be used to support product development and convert existing pilots into commercial deployments. The company is not immediately looking to raise another round.

“We recently closed a pre-emptive seed extension round, so our immediate focus is on execution rather than fundraising,” he said.

“Our goal now is to successfully complete the journey from product development and customer validation to scaled deployments. If those milestones are achieved and demand continues to grow, that would be a natural point to evaluate a future funding round to accelerate expansion,” Chandrasekar added.