Centre Approves 24 Chip Design Projects to Boost India’s Semiconductor Ecosystem

New Delhi — In a significant push to strengthen India’s semiconductor sector, the Centre has approved 24 chip design projects under the Design Linked Incentive (DLI) Scheme, spanning key areas such as video surveillance, drone detection, energy metering, microprocessors, satellite communications, and broadband and IoT Systems-on-Chip (SoCs), according to an official statement issued on Sunday.

In addition, 95 companies have been granted access to industry-grade Electronic Design Automation (EDA) tools, substantially lowering design and infrastructure costs for Indian chip design startups and MSMEs.

Chip design remains the primary value driver in the semiconductor supply chain, accounting for up to 50 per cent of value addition and contributing nearly 30–35 per cent of global semiconductor sales through the fabless segment.

Projects supported under the DLI scheme are scaling rapidly, with 16 tape-outs completed, six ASIC chips developed, 10 patents filed, over 1,000 engineers engaged, and more than three times private investment leveraged, the statement said.

The Design Linked Incentive Scheme is being implemented by the Ministry of Electronics and Information Technology (MeitY) as part of the Rs 76,000 crore Semicon India Programme, which supports investments across semiconductor and display manufacturing as well as the design ecosystem. Under this framework, the DLI scheme provides end-to-end support covering design, fabrication, and productisation. The Centre for Development of Advanced Computing (C-DAC), a premier MeitY R&D organisation, is the nodal agency responsible for implementing the DLI scheme.

The Semicon India Programme aims to catalyse a strong, self-reliant chip design ecosystem by offering financial incentives and access to advanced design infrastructure for domestic startups and MSMEs.

According to the statement, the scheme is now driving a transition from design validation to productisation, enabling startups and MSMEs to move toward volume manufacturing, system integration, and market deployment. This evolving ecosystem is strengthening India’s domestic semiconductor capabilities while positioning the country as a credible player in global chip design and innovation.

India’s semiconductor ecosystem is being reinforced through a coordinated institutional framework that integrates policy leadership, investment support, capacity building, and indigenous technology development. Key programmes and agencies provide comprehensive support—from incentivising chip design and manufacturing to developing skilled talent and promoting open-source microprocessor architectures—ensuring steady progress toward a globally competitive and self-reliant semiconductor design ecosystem.

The Chips to Startup (C2S) Programme, currently being implemented, focuses on academic institutions across the country and aims to generate 85,000 industry-ready professionals at the B.Tech, M.Tech, and PhD levels, specialised in semiconductor chip design.

The DLI scheme seeks to address structural disadvantages faced by India’s domestic semiconductor design industry and help Indian companies move up the semiconductor value chain. The statement emphasised that without strong fabless capabilities, a nation remains dependent on imported core technologies even if electronics are manufactured locally. Building a robust fabless ecosystem enables India to retain intellectual property, reduce imports, attract manufacturing investments, and establish long-term technological leadership.

—With inputs from IANS