The Indian government has approved support for over 100 chip design firms under the Design Linked Incentive scheme, signalling a major push to build a comprehensive semiconductor ecosystem amid new funding and programme expansions.
India has cleared 105 semiconductor chip design firms for access to advanced electronic design automation tools under the Design Linked Incentive scheme, while 24 projects have secured financial backing under the Semicon India Programme, the government told the Rajya Sabha. The approvals point to a broader push to deepen the country’s chip design ecosystem at a time when New Delhi is trying to build out more of the value chain, not just fabrication capacity.
Launched in 2022, the Design Linked Incentive scheme is intended to support domestic companies, start-ups and MSMEs working on semiconductor design, including integrated circuits, chipsets, system-on-chip platforms and related products, according to the Semicon India portal. Between FY2022 and FY2026, the government received 115 applications for financial assistance, approved 24 and rejected 91, with no cases pending. For EDA tools, it received 144 applications, approved 105 and rejected 30, leaving no applications under review. The Ministry of Electronics and Information Technology said requests for EDA support remain open on a rolling basis.
Officials have also pointed to persistent hurdles for start-ups, including limited seed and expansion capital, weak market access and the need for product qualification, certification and customer validation. To address those gaps, the ministry has been holding consultations with start-ups, global companies, electronics manufacturers, foundries, packaging partners and venture capital investors, alongside buyer-seller meetings and the annual SEMICON India conference. The ministry said DLI-backed firms have drawn venture capital funding worth more than four times the public assistance they received and have completed collaborations that led to 25 chip tape-outs across multiple foundries.
The latest figures come as India widens its semiconductor push through Semicon 2.0, approved by the Union Cabinet on July 15 with a fiscal outlay of ₹1,27,500 crore. According to government and industry summaries, the new phase expands support across six areas: chip design, machinery and materials, fabrication units, advanced packaging, research and development and talent development. It also broadens eligibility beyond start-ups and MSMEs and allows companies owned and controlled by Overseas Citizens of India to take part, signalling a more ambitious effort to position India in global semiconductor supply chains.
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