Securing data and calls without software? Born from a defence challenge, Bengaluru-based Chipspirit shows how hardware-only encryption uses custom circuits and FPGAs to protect mission-critical communications.
In 2018, Mohan Jindal left his high-paid job at Intel to start Chipspirit. It all started when iDEX (Innovations for Defence Excellence) issued a challenge to develop a secure hardware-based encryption device. Mohan and his wife applied for this challenge. At first, they thought this might also require software development, but later they realised it, was a serious “hardware-only” project.
The startup claims to have developed hardware-based security devices that protect network data (video, voice, file transfer, and other critical data exchanges) without requiring software intervention. But is that really possible? How does software work? One can start by writing a program. The compiler then converts it into intermediate code, which the assembler translates into assembly language, and finally into machine language.
They implemented machine language instructions directly in hardware, building circuits that perform specific tasks. Each circuit is designed to execute a particular instruction. For example, in encryption, a simplified process might involve adding and multiplying numbers to generate the encrypted output, while decryption would use division and subtraction to recover the original data. Normally, these instructions are executed by the CPU via assembly or machine language. Here, logic gates like AND, OR, and NOT perform these operations directly in hardware. More complex combinations of these logic gates are used to implement mathematical and algorithmic functions, such as encryption and decryption. “This approach took us around six and a half years to develop,” said Mohan.
To better understand, this can be taken as an example. An enterprise is using these hardware security systems and makes a call between the two cities. A network node (router) is present at each end, with the ABHED-1 installed on both routers. Routers have Ethernet RJ45 ports, so the device is inserted by breaking the existing wire. This bump-in-the-wire setup works only for wire-based connections. Bump-in-the-wire is an existing technology that has been used for years in defence, government, industrial, and high-security networks. Unlike common video or voice conferencing tools, which route communication through central servers before reaching the other user, a bump-in-the-wire setup encrypts data at the source and sends it directly to the recipient, with no intermediate servers.
“You can use any network to communicate, like Airtel or Jio. Their servers cannot decrypt network traffic unless our ABHED-1 device is deployed on-site. For end-to-end encryption involving public service providers, the servers must have decryption capability,” explained Mohan.
At the other end, the ABHED-1 device connects to the router, ensuring secure communication between the two end-devices. Data is encrypted before transmission and decrypted upon reception. “Our systems operate at gigabit-per-second speeds, so encryption and decryption happen so fast that you will not notice any delay,” added Mohan.
But how does communication happen without involving software or servers? When people communicate across cities, they are notdirectly connected via Wi‑Fi, which only works over short ranges, such as inside a home. Beyond that, communication relies on wired networks. The servers in between, such as those from Airtel or Jio, can be public, but they cannot decrypt the data without the specific hardware required.
Now comes the encryption and decryption keys. The keys are managed entirely by the user. For example, in an enterprise setup, keys do notneed to be shared and can be changed daily if desired. Users insert these keys into the system via a proprietary startup method, which can be customised for each userthey customised.
Building a fully hardware-based security system was extremely challenging. The team had to create all subsystems from scratch. Initially, some parts were simulated using available IPs, but eventually, no IPs were available, making validation and verification much more difficult,. They procured components, built systems in the lab, and even used USB analysers to check signals. Mohan said, “We tested everything on field-programmable gate array (FPGA) systems, clarified specifications with the customer, and added features as needed. First, we built a general box to prove the concept, then made specific versions for particular customer requirements.”
The company did not disclose revenue details but did share the government funding it received for product development. Through various government programs, the company secured about ₹82 million: ₹15 millionvia the Defence iDEX challenge, ₹32.2 millionfrom the Telecom Technology Development Fund (TTDF) scheme, ₹22 millionfrom the Chips to Startup (C2S) scheme from the Ministry of Electronics and Information Technology (MeitY), ₹9 millionfrom Telecom Centres of Excellence (TCOE) grants, and ₹1.8 millionfrom the Karnataka Elevate winners programme.
Regarding semiconductor chips, India currently lacks large facilities with the latest fabrication capabilities. The startup sources many components internationally but handles full printed-circuit board (PCB) fabrication, assembly, validation, quality testing, and firmware loading entirely in-house at its Bengaluruoffice.
The startup has several academic collaborations, and the Indian defence is its direct customer. International defence clients in the UAE and other Gulf countriesdefence are seeking general partners. “Our sales team is currently small, so we are focusing on building sales and marketing capacity before finalising distributor or channel agreements. We expect this expansion by the second half of the second quarter next year,” added Mohan.
The startup’s current challenge is the procurement process withare government agencies. As a new product with no direct comparison to existing devices, proving its value takes longer, and securing regulatory approval is more time-consuming.
For future growth, the startup is focusing on strengthening its core research and development (R&D) team and expanding marketing and sales next year. The company says it is already receiving numerous inquiries, addressing some and actively pursuing others, while seeking partners to reach international defence customers.
