India Greenlights 23 Semiconductors for Design Enhancement under National Initiative to Propel Semiconductor Innovation and Domestic Production

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August 23, 2025

India‘s Semiconductor Ambitions Accelerated: 23 Chip Design Projects Cleared Under DLI Scheme

New delhi – India is significantly advancing its capabilities in semiconductor design with the approval of 23 projects under the Design Linked Incentive (DLI) scheme. This initiative, a core component of the ₹76,000 crore Semicon India Program, signals a major push towards self-reliance in a strategically vital sector.

Understanding the Design Linked Incentive Scheme

Launched in December 2021, the DLI scheme aims to foster a robust ecosystem for chip design within India by supporting Startups, Micro, Small and Medium Enterprises (MSMEs), and academic institutions. The programme offers substantial incentives, including financial support up to ₹15 crore per project for prototyping and eventual commercialization.

Moreover, participating entities are eligible for incentives ranging from 4% to 6% on net sales turnover over a five-year period, capped at ₹30 crore. crucially, the scheme also provides access to essential Electronic Design Automation (EDA) tools and Intellectual Property (IP) cores, enabling cutting-edge design capabilities.

Key Projects Driving India’s Chip Design Revolution

While a comprehensive list of all 23 approved projects remains confidential, several notable initiatives have already been highlighted by the Ministry of Electronics and Details Technology (MeitY). These projects span a diverse range of applications, demonstrating the breadth of India’s ambitions in the semiconductor space.

Here’s a snapshot of some of the key companies and their project focuses:

Company	Project Focus	Projected Timeline
Vervesemi Microelectronics	ICs for weighing scales, sensors, smart energy meters, motor controllers, EV/drone applications, and aerospace data acquisition.	sampling: late 2025 – 2026
SiCSem	Silicon carbide-based chip solutions.	Details Pending
Continental Device India pvt. Ltd (CDIL)	Legacy and strategic semiconductor components.	Details Pending
3D Glass Solutions Inc.	Advanced packaging and interconnect technologies.	Details Pending
ASIP Technologies	System-in-package innovations for compact electronics	Details Pending

Impact Beyond the Blueprint

The approved initiatives are not limited to specific applications. They encompass diverse areas such as surveillance technologies, advanced energy metering, microprocessor architecture, and networking systems.Experts suggest that Vervesemi Microelectronics is poised to be a critically important beneficiary, focusing on developing specialized ASICs for smart energy management, efficient motor controls for electric vehicles and drones, and high-precision data acquisition systems for the aerospace industry.

Strategic Benefits of the DLI scheme

The DLI scheme is poised to deliver substantial benefits for India’s technological landscape:

• Reduced Import Dependence: Decreases reliance on foreign chip designs, bolstering national security and economic independence.
• Job Creation: Is projected to generate thousands of skilled jobs across six states, fostering economic growth.
• enhanced global Competitiveness: Positions India as a key player in the global chip design market.
• Manufacturing Synergy: Complements the ₹1.6 trillion investment in fabrication projects under the India semiconductor Mission (ISM).

Did you Know? The global semiconductor market is currently valued at over $550 billion and is projected to reach $1 trillion by 2030, making it a critical area for economic growth and technological advancement.

Pro Tip: Investing in domestic chip design capabilities is not only about economic self-reliance but also about securing supply chains and protecting intellectual property.

A Transformative Shift for India

The DLI scheme represents a pivotal moment in India’s journey from being solely a consumer of semiconductor technology to becoming a significant global contributor to its design and development. MeitY’s commitment extends beyond financial incentives, with the agency having already facilitated access to crucial EDA tools for 72 companies and 278 academic institutions. This concerted effort will empower a new generation of Indian engineers and innovators.

What long-term impact do you foresee from this push towards domestic chip design? And how might this initiative affect India’s position in the global technology landscape?

The Broader Context of India’s Semiconductor Push

India’s commitment to semiconductors extends beyond the DLI scheme.the government has outlined ambitious plans to attract foreign investment in semiconductor manufacturing, aiming to establish India as a global hub for chip production. This comprehensive approach, encompassing design, manufacturing, and talent development, is crucial for achieving long-term success in this fiercely competitive industry.

Frequently Asked Questions About the DLI Scheme

• What is the primary goal of the DLI scheme? The scheme aims to boost domestic semiconductor chip design capabilities and reduce reliance on foreign sources.
• How much funding is available per project under the DLI scheme? Projects can receive up to ₹15 crore for prototyping and commercialization.
• What kind of incentives are offered to companies participating in the DLI scheme? Incentives include financial support, access to EDA tools, and sales turnover incentives.
• What are the key areas of focus for the approved chip design projects? Projects span areas like energy meters, surveillance systems, aerospace, and electric vehicles.
• What role does the India Semiconductor Mission (ISM) play? The ISM oversees manufacturing investments and ensures synergy between design and production efforts.
• How will the DLI scheme benefit the Indian economy? It’s expected to create jobs,attract investment,and enhance India’s global competitiveness.
• Who is responsible for implementing the DLI scheme? The Ministry of Electronics and Information Technology (MeitY) is the driving force behind the initiative.

Share your thoughts on India’s semiconductor ambitions in the comments below!

What is the primary goal of India’s approval of 23 semiconductor design projects?

India greenlights 23 Semiconductors for Design Enhancement under National Initiative

India’s aspiring drive towards self-reliance in the semiconductor industry has taken a importent leap forward. The government has recently approved 23 projects focused on semiconductor design, a crucial step under the national initiative to boost domestic semiconductor innovation and production. This move signals a strong commitment to reducing reliance on imports and establishing India as a key player in the global semiconductor supply chain.

Understanding the DLI Scheme & Approved Projects

The approved projects fall under the Design-Linked Incentive (DLI) scheme, a component of the broader India Semiconductor Mission. This scheme provides financial incentives to companies involved in semiconductor design.The 23 projects represent a diverse range of applications, including:

High-Performance Computing (HPC): Designs targeting advanced processors for data centers and scientific applications.

Artificial Intelligence (AI): Specialized chips optimized for machine learning and AI workloads.

Automotive Electronics: Semiconductor solutions for the rapidly growing electric vehicle (EV) and automotive sectors. This includes automotive semiconductors for ADAS (Advanced Driver-Assistance Systems).

5G & 6G Communication: Designs for next-generation telecommunications infrastructure.

Consumer Electronics: Chips powering smartphones, wearables, and othre consumer devices.

Defense & Aerospace: Secure and reliable semiconductors for critical defense applications.

The total investment committed by these companies is substantial, demonstrating confidence in India’s growing semiconductor ecosystem. The government’s financial support, coupled with a skilled engineering workforce, is proving to be a powerful combination.

Key Players & Investment Breakdown

While specific details regarding individual company investments are frequently enough confidential, the approved list includes a mix of established Indian firms, startups, and collaborations with international entities. Several prominent names are involved, focusing on areas like:

VLSI Design: Companies specializing in Very-Large-scale Integration (VLSI) design are central to the initiative.

IP core Growth: A significant focus is on developing Intellectual Property (IP) cores, reusable blocks of logic that accelerate chip design.

System-on-Chip (SoC) Design: Projects centered around designing complete SoCs, integrating multiple functionalities onto a single chip.

The financial incentives offered under the DLI scheme can cover up to 50% of the design cost, with varying caps depending on the project’s complexity and innovation level. This financial backing is critical for mitigating the high upfront costs associated with semiconductor design.

Impact on domestic Semiconductor Production

The focus on design enhancement is a strategic move. While India currently lags in semiconductor fabrication (manufacturing), a strong design capability is a prerequisite for building a thriving domestic production ecosystem.

Here’s how this initiative contributes to domestic production:

1. Demand creation: Triumphant designs will generate demand for semiconductor manufacturing services, both within India and abroad.
2. Talent Pool Development: The projects will foster a skilled workforce in semiconductor design, creating a talent pool that can support future fabrication efforts.
3. Ecosystem Building: The initiative encourages collaboration between design houses,research institutions,and potential manufacturing partners.
4. Reduced Import Dependence: By designing more chips domestically, India can reduce its reliance on imports, bolstering its economic security.

The Global Semiconductor landscape & India’s position

The global semiconductor industry is currently undergoing a period of significant transformation, driven by factors like geopolitical tensions, supply chain disruptions, and increasing demand for advanced technologies. Countries worldwide are investing heavily in bolstering their domestic semiconductor capabilities.

India’s initiative aligns with this global trend. However, challenges remain:

Fabrication Capacity: Establishing large-scale semiconductor fabrication facilities requires massive investment and technological expertise. India is actively seeking partnerships to address this gap.

Skilled Workforce: While India has a large pool of engineers, specialized training in advanced semiconductor technologies is crucial.

Infrastructure Development: Reliable power supply, water availability, and robust logistics are essential for supporting semiconductor manufacturing.

Despite these challenges, India’s strengths – a large domestic market, a skilled workforce, and a supportive government – position it favorably to become a significant player in the global semiconductor industry. The current focus on design is a pragmatic and essential first step.

Benefits of a Strong Domestic Semiconductor Industry

A thriving domestic semiconductor industry offers numerous benefits to India:

Economic Growth: The semiconductor industry is a high-value sector with significant potential for job creation and economic growth.

Technological Independence: Reducing reliance on imports enhances India’s technological independence and strategic autonomy.

Innovation & R&D: A strong semiconductor ecosystem fosters innovation and research & development in related fields.

National security: Domestic semiconductor production is crucial for ensuring the security of critical infrastructure and defense systems.

Boost to Manufacturing: Supports the “Make in India” initiative and strengthens the manufacturing sector.

Practical Tips for Companies Participating in the DLI Scheme

For companies participating in the DLI scheme, here are some practical tips:

Focus on Niche Areas: Identify specialized areas where India can