The Government of India has taken a significant step toward strengthening the country’s semiconductor ecosystem by sanctioning 23 semiconductor chip-design projects under the Design Linked Incentive (DLI) Scheme. The move aims to promote indigenous innovation, boost self-reliance in semiconductor technology, and ensure that India becomes a global hub for chip design and intellectual property creation.

The projects, largely led by domestic startups and Micro, Small, and Medium Enterprises (MSMEs), cover a wide range of applications, including surveillance cameras, energy meters, microprocessor intellectual properties (IPs), and networking technologies. To support these efforts, the government has also facilitated 72 companies with access to Electronic Design Automation (EDA) tools, enabling them to carry out advanced semiconductor design and testing.

Vervesemi Microelectronics at the forefront

Among the sanctioned projects, Vervesemi Microelectronics has emerged as a standout innovator. Founded in 2017, the company is one of the first in India to export semiconductor intellectual property (IP) on a global scale. It already boasts an impressive portfolio, with:

• 110+ IPs

• 25 Integrated Circuit Stock Keeping Units (IC SKUs)

• 10 patents

• 5 trade secrets

The company has laid out an ambitious roadmap for its integrated circuits (ICs), with mass production scheduled between late 2026 and early 2027. Its portfolio spans across defence, aerospace, industrial automation, and smart energy applications, positioning India as a formidable force in the global semiconductor supply chain.

Embedded machine learning for next-gen chips

A remarkable feature of the new generation of chips being developed under the DLI initiative is the integration of embedded machine learning. These chips are designed to deliver fault tolerance, predictive diagnostics, and self-healing capabilities, making them far more efficient, reliable, and adaptable to future needs. Such technologies will be particularly crucial for electric vehicles, drones, space systems, weighing devices, and smart energy metering solutions.

Policy push and vision for self-reliance

The Ministry of Electronics and Information Technology (MeitY) has highlighted that the DLI Scheme is more than just a funding mechanism; it represents a strategic national vision to build a resilient and globally competitive semiconductor design ecosystem in India. Leaders from MeitY and the industry have described these developments as a milestone in India’s semiconductor journey, stressing the importance of “designed-in-India” chips for the country’s technological sovereignty.

The DLI Scheme is part of the broader Semicon India programme, which also includes incentives for semiconductor fabrication, display manufacturing, and research collaborations. Together, these initiatives underline the government’s commitment to building a comprehensive semiconductor ecosystem in India that covers everything from design to manufacturing.

Strategic impact and future outlook

By investing in domestic chip design capabilities, India not only reduces its reliance on imported semiconductors but also positions itself as a global exporter of semiconductor IP and advanced ICs. With the global semiconductor market projected to cross US$ 1 trillion by 2030, India’s proactive steps could capture a significant share of this growth.

The DLI-backed projects and the innovation push by companies like Vervesemi are expected to create new opportunities for talent development, job creation, and research collaborations with global leaders. Additionally, India’s growing reputation in space, defence, and energy sectors further amplifies the importance of having a robust domestic chip supply chain.

In conclusion, the sanctioning of 23 semiconductor design projects under the DLI Scheme marks a transformational moment in India’s technology journey. By empowering startups and MSMEs, providing access to critical EDA tools, and encouraging innovations like AI-enabled self-healing chips, India is laying the foundation for a self-reliant, globally competitive semiconductor industry.

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