India Approves 23 Chip Design Projects Under DLI Scheme, Boosting Semiconductor Manufacturing
The Ministry of Electronics and Information Technology (MeitY) has announced a significant milestone in India's semiconductor development journey by approving 23 chip design projects under the Design Linked Incentive (DLI) scheme. This strategic initiative supports domestic startups and micro, small, and medium enterprises (MSMEs) in developing cutting-edge semiconductor solutions for diverse applications.
Comprehensive Support for Domestic Chip Design
The approved projects span various sectors, from surveillance cameras to smart energy meters, demonstrating the government's commitment to building a robust semiconductor ecosystem. Additionally, 72 companies have received access to industry-grade Electronic Design Automation (EDA) tools, essential software platforms that accelerate chip design and development processes.
This comprehensive approach addresses both the design and manufacturing aspects of semiconductor development, positioning India as a competitive player in the global chip market.
Vervesemi Microelectronics: Leading Innovation in Fab-less Design
Among the beneficiary companies is Vervesemi Microelectronics, a Bengaluru-based fabless semiconductor company established in 2017. As a fabless operation, Vervesemi focuses on chip design and development while outsourcing manufacturing to specialized foundries, allowing the company to concentrate on innovation without capital-intensive fabrication facilities.
The company has developed an ambitious portfolio of integrated circuits (ICs) targeting both strategic and consumer markets:
- ASIC for weighing scale and bridge sensor applications - Expected sampling by end-2025
- Smart energy metering ASIC - Sampling scheduled for end-2025
- BLDC controller ASIC for small motors - Targeting fans and appliances, with sampling in 2026
- Motor-control ASICs - Designed for electric vehicles, drones, and industrial automation (2026)
- Data acquisition ASICs - Specialized for aerospace and avionics applications (2026 engineering samples)
Strategic Impact on India's Semiconductor Ecosystem
Rakesh Malik, founder and CEO of Vervesemi, emphasized the transformative potential of these developments. He highlighted that these innovations represent a crucial turning point for India's semiconductor ecosystem, enabling the country to build high-performance, domestically manufactured integrated circuits for both strategic and consumer markets.
The initiative drives import substitution while demonstrating India's capability to compete and lead on the global semiconductor stage. This approach reduces dependence on foreign chip suppliers while building indigenous technological capabilities.
Broader Semiconductor Manufacturing Initiative
The DLI scheme approval is part of India's comprehensive semiconductor push, which encompasses both production and design capabilities. The Union Cabinet recently cleared four additional semiconductor manufacturing projects under the India Semiconductor Mission (ISM), expanding the country's manufacturing footprint.
The new manufacturing facilities are strategically distributed across multiple states:
- Two facilities planned in Odisha
- One facility each in Andhra Pradesh and Punjab
Massive Investment and Employment Generation
The semiconductor development program represents a substantial economic commitment, with 10 semiconductor projects worth ₹1.6 trillion planned across six states. This massive investment is expected to create thousands of direct and indirect employment opportunities, contributing significantly to India's economic growth.
The recently sanctioned manufacturing units include proposals from several key players:
- SiCSem
- Continental Device India Pvt. Ltd (CDIL)
- 3D Glass Solutions Inc
- Advanced System in Package (ASIP) Technologies
These projects collectively involve investment of approximately ₹4,600 crore and are projected to generate direct employment for over 2,000 skilled workers, along with substantial indirect job creation.
Technology and Innovation Focus Areas
The approved chip design projects target critical technology sectors that align with India's strategic priorities. The focus on applications ranging from defense and aerospace to consumer electronics and energy management demonstrates a comprehensive approach to semiconductor development.
The provision of industry-grade EDA tools to 72 companies ensures that Indian semiconductor designers have access to the same advanced software platforms used by global chip manufacturers, leveling the competitive playing field.
Market Implications and Future Outlook
This government initiative positions India to capture a larger share of the global semiconductor market, estimated to be worth hundreds of billions of dollars. The focus on both design and manufacturing creates opportunities for vertical integration and value addition across the semiconductor supply chain.
The timeline for various projects, with sampling and production phases extending through 2026, provides a clear roadmap for stakeholders and investors interested in India's semiconductor sector development.
Investment Opportunities and Sector Growth
The substantial government backing through the DLI scheme and broader semiconductor mission creates attractive investment opportunities for both domestic and international investors. The sector's growth potential is supported by strong government policy framework and strategic focus on technology independence.
Companies involved in semiconductor design, manufacturing equipment, and related services are likely to benefit from this comprehensive development approach. The creation of a robust ecosystem supports the growth of ancillary industries and service providers.
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