Indian Startups Drive Semiconductor Innovation Under DLI Scheme

India’s semiconductor ambitions are gaining significant momentum as domestic startups accelerate their chip design and intellectual property development under the government’s Design Linked Incentive (DLI) Scheme.

The Ministry of Electronics and Information Technology (MeitY) announced on Thursday that the scheme has already sanctioned 23 chip design projects, with 72 companies granted access to advanced Electronic Design Automation (EDA) tools.

The DLI Scheme is a cornerstone of India’s ‘Make in India’ and ‘Aatmanirbhar Bharat’ initiatives, aimed at building a self-reliant semiconductor ecosystem.

It focuses on enabling startups and companies to design and develop critical chips for sectors such as surveillance, energy metering, networking, and motor control.

Several startups highlighted their roadmaps and technological innovations at Semicon India 2025, held at the Yashobhoomi exhibition centre in New Delhi.

Notably, InCore Semiconductors, founded by the creators of India’s first open-source RISC-V processor, SHAKTI, unveiled a pioneering System-on-Chip (SoC) Generator Platform.

This platform dramatically reduces frontend chip design time from months to minutes by automating complex design steps.

The automation not only shortens development cycles but also reduces costs and mitigates design risks, accelerating innovation for InCore’s clients.

Demonstrating its capabilities, the company showcased a test chip fabricated using Taiwan Semiconductor Manufacturing Company’s (TSMC) 40nm process node.

This chip features six heterogeneous RISC-V cores, a custom Network-on-Chip with automatic protocol bridging, multiple integrated peripherals, and a complete software stack including a Real-Time Operating System (RTOS).

Indigenous SoC Development for Critical Applications

Other Indian startups are similarly making strides. Aheesa Digital Innovations plans to release its SoC along with reference platforms to Original Equipment Manufacturers (OEMs) and Original Design Manufacturers (ODMs) by early 2026.

This chip, entirely designed in India, will enable customised networking and broadband solutions.

Additionally, companies like 3rdiTech, Netrasemi, BigEndian Semiconductors, and Mindgrove Technologies are developing indigenous SoC solutions tailored for critical use cases such as surveillance and CCTV cameras.

Prime Minister Narendra Modi visited the Semicon India 2025 exhibition on its second day, accompanied by Electronics and IT Minister Ashwini Vaishnaw and Minister of State Jitin Prasada.

During his visit, the Prime Minister emphasised the critical role of startups in driving India’s semiconductor ecosystem forward and highlighted the importance of homegrown Intellectual Property (IP) creation.

The accelerated innovation under the DLI Scheme reflects India’s commitment to nurturing a vibrant semiconductor ecosystem, reducing dependence on foreign technology, and establishing itself as a global hub for chip design and manufacturing.

With continuous government support and entrepreneurial zeal, Indian startups are charting a path toward technological self-reliance and economic growth.

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