The Government of India has recently announced the approval of 23 chip-design projects as part of its continuous push to boost the semiconductor sector. Under the Ministry of Electronics and Information Technology’s Design Linked Incentive (DLI) Scheme, the move aims to accelerate domestic innovation and create a strong ecosystem to support India’s technological ambitions. By targeting startups, MSMEs, and academic institutions, this approval marks a crucial step towards reducing dependence on imported microchips and advancing “designed in India” solutions for a rapidly digitizing world.
Focus on Self-Reliance and Key Applications:
The sanctioned chip-design projects are expected to impact a diverse range of applications, from critical surveillance systems and smart energy meters to networking infrastructure and custom microprocessor IP cores. Through the DLI scheme, seventy-two companies now have access to industry-standard Electronic Design Automation (EDA) tools, vastly improving their research and design capabilities. Notably, the support is not restricted to funding alone but extends to providing vital intellectual property cores, knowledge networks, and technical guidance, creating a favourable environment for new entrants in a complex and capital-intensive field.
One of the standout beneficiaries is Vervesemi Microelectronics, a Bengaluru-based fabless semiconductor company. Established in 2017 and already recognized for an extensive portfolio of over 110 IPs, multiple IC SKUs, patents, and proprietary technologies, Vervesemi is developing integrated circuit solutions that range from industrial automation and aerospace systems to energy management and consumer electronics. The company’s upcoming chips are on track for sampling between late 2025 and 2026, with a focus on strategic sectors and mass-market applications alike.
Incentive Structure and Long-Term Vision:
Backed by India’s ambitious ₹76,000 crore Semicon India Programme, the DLI scheme specifically dedicates ₹1,000 crore to semiconductor design, offering a combination of design infrastructure, prototyping support, and direct financial incentives. Companies can receive up to 50 percent reimbursement of eligible project costs, with limits up to ₹15 crore, and additional incentives tied to commercialization gains, capped at ₹30 crore per applicant. These efforts acknowledge the challenging entry barriers and long commercialization cycles typical in chip design, providing founders and researchers much-needed security and motivation to innovate.
The government aims to promote long-term partnerships in addition to providing urgent project support. Partnerships between industry and academics, instructional programs, and technology workshops that transform talent and research into viable goods all contribute to the ecosystem’s strength. As a result, the programs not only strengthen current industry participants but also establish standards for design scalability, quality, and dependability that can improve India’s position in global value chains.
National Impact and Future Prospects:
The strategic approval of these 23 projects is part of a broader push to build a comprehensive, world-class semiconductor manufacturing and design ecosystem. With targeted investments projected to exceed ₹1.6 trillion across six Indian states, the strategy also includes accepting proposals from premier technological consortiums and clearing four significant new manufacturing locations. It is expected that the approved projects and policy measures will create thousands of direct jobs for qualified experts and additional indirect employment opportunities across the supply chain.
Industry leaders believe this proactive stance will not only position India as a credible supplier of high-performance chips but also ensure the country’s resilience in the face of global semiconductor shortages. Homegrown design capabilities will open up avenues for export, reduce vulnerabilities from import dependencies, and anchor more advanced technology manufacturing locally.
For the Indian electronics industry to write a new chapter of growth, these chip-design efforts must succeed. The government is setting the stage for India to become a global leader in semiconductor innovation by encouraging new ideas, developing talent, and making bold financial commitments. This will eventually lead to the long-term goal of having a “designed and made in India” chip in every gadget in the world.
