As part of the Design Linked Incentive (DLI) Scheme, 24 chip design projects have been approved in various sectors like video surveillance, drone detection, energy meters, microprocessors, satellite communications, and broadband and IoT Systems-on-Chip (SoCs). Additionally, 95 companies now have access to industry-grade Electronic Design Automation (EDA) tools, reducing costs for Indian chip design startups significantly.
Semiconductor chip design plays a crucial role in the supply chain, contributing up to 50% of value addition and 30–35% of global semiconductor sales through the fabless segment. The DLI-supported projects are rapidly expanding, with achievements including 16 tape-outs, 6 ASIC chips, 10 patents, engagement of over 1,000 engineers, and leveraging more than 3× private investment.
The Ministry of Electronics and Information Technology (MeitY) is spearheading the implementation of the DLI Scheme with an allocation of Rs 76,000 crore. This initiative supports investments in semiconductor and display manufacturing, focusing on the design ecosystem. C-DAC, a premier R&D organization of MeitY, is overseeing the DLI Scheme’s execution as the nodal agency.
The Semicon India Programme aims to boost a robust, self-reliant chip design ecosystem by offering financial incentives and access to advanced design infrastructure for domestic startups and MSMEs. This initiative is facilitating the shift from design validation to productization, enabling startups and MSMEs to progress towards volume manufacturing, system integration, and market deployment.
India’s semiconductor ecosystem is being fortified through a comprehensive institutional framework that emphasizes policy leadership, investment support, capacity building, and indigenous technology development. Various programs and agencies are providing comprehensive support, from encouraging chip design and manufacturing to nurturing skilled talent and promoting open-source microprocessor architectures.
The Chips to Startup (C2S) Programme, currently in progress, aims to produce 85,000 industry-ready professionals at B.Tech, M.Tech, and PhD levels, specializing in semiconductor chip design. The DLI scheme is designed to address the challenges faced by India’s domestic semiconductor design industry and help local companies ascend the semiconductor value chain.
Establishing a robust fabless ecosystem is crucial for reducing dependency on imported core technologies, even if electronics are manufactured domestically. By enhancing fabless capabilities, India can control a critical layer of the value chain, retain intellectual property, decrease imports, attract manufacturing, and achieve long-term technological leadership.
