Central government approves 24 new chip design projects, to be used from drones to satellites
New Delhi (The Uttam Hindu): The central government has approved 24 new chip design projects under the Design Linked Incentive (DLI) scheme to strengthen India’s semiconductor and chip design ecosystem. According to an official statement released on Sunday, these projects will support advanced technologies such as video surveillance systems, drone detection, energy meters, microprocessors, satellite communication, broadband infrastructure, and Internet of Things (IoT) system-on-chip (SoC) solutions.
The statement further noted that 95 companies have been provided access to industry-grade Electronic Design Automation (EDA) tools. This move will significantly reduce operational costs for chip design startups while giving them access to high-quality design infrastructure.
Chip design is considered the highest value-adding segment in the semiconductor manufacturing process. It contributes nearly 50 percent of the value in the supply chain and accounts for around 30–35 percent of global semiconductor sales through the fabless segment.
Under the DLI-supported initiatives, progress has been rapid. So far, the scheme has resulted in 16 tape-outs, development of six ASIC chips, filing of 10 patents, and engagement of more than 1,000 engineers. Private sector investment in the segment has also increased nearly threefold.
The DLI scheme is being implemented by the Ministry of Electronics and Information Technology with an outlay of ₹76,000 crore. It supports not only semiconductor and display manufacturing but also the entire chip design ecosystem.
The scheme provides end-to-end support to startups and MSMEs, covering everything from design to final product development. Its primary objective is to bridge existing gaps in India’s domestic semiconductor design sector and promote self-reliance.
In addition, through the Chips to Startup (C2S) programme, around 85,000 engineering, postgraduate, and PhD students across educational institutions are being trained in chip design and related technologies.
The statement emphasized that without strong fabless capabilities—based on indigenous design and technology—a country remains dependent on foreign technologies. The DLI scheme aims to reduce imports, enhance domestic expertise, and position India as a future leader in semiconductor technology.