If VC firms started showing more interest in India then more such firms can come up since the initial barrier itself is cost for small startups, cost related to tools and manufacturing.
That said any tech startups becoming big in their domain is still a distant dream because of risk averse nature of the engineers and entrepreneurs.
For Indian Companies as observed by Ganesh Ramamoorthy it is quite right that they will be able to grow more for IP business India has very rich intelligent manpower for development purpose and the regulations in India is not supporting Physical Production so in the coming time many such ventures will come in limelight from India.
Good move by these small Indian companies. By keeping themselves domain specific they can build expertise and offer IP for SOC designers. This minimizes their financial risk and they build their reputation in the specific application area and multiply their revenue.
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Smaller, expert IP companies, especially analog/mixed-signal providers, are really gems to find. By using good due diligence methods, SoC companies properly evaluate their expertise and avoid the dogma that smaller IP companies are inherently "bad".
Fear of the unknown IP provider has cost many SoC companies to make due with whatever IP company they have heard of the most. Benefit from the domain and application expertise of these smaller companies - your competitors are not going to tell you about them.
Replay available now: A handful of emerging network technologies are competing to be the preferred wide-area connection for the Internet of Things. All claim lower costs and power use than cellular but none have wide deployment yet. Listen in as proponents of leading contenders make their case to be the metro or national IoT network of the future. Rick Merritt, EE Times Silicon Valley Bureau Chief, moderators this discussion. Join in and ask his guests questions.