The Ministry of Electronics and IT – MeitY has recently approved proposals from 12 Indian startups, investing over Rs 130 crore in their semiconductor design projects. These initiatives cover a broad spectrum of applications, from telecommunication integrated circuits to artificial intelligence (AI) hardware accelerators, according to The Indian Express.
The total cost of these approved projects amounts to Rs 342 crore, with the Centre committing nearly Rs 133 crore. To date, the government has disbursed just over Rs 7 crore. Of the 59 applications submitted under the Design Linked Incentive (DLI) scheme, 12 have received financial backing, while 21 are still under review.
The selected start-ups and their innovative projects include:
DV2JS Innovation: Developing an image sensor system on chip for automotive uses.
Vervesemi Microelectronics: Creating a microcontroller integrated circuit tailored for industrial applications.
Fermionic Design: Working on a beamformer IC for satellite communications.
Morphing Machines: Designing RISC-V multi-core accelerators for telecom.
Calligo Technologies: Developing hardware accelerators for AI applications.
Sensesemi Technologies: Crafting a wearable SoC for healthcare.
Saankhya Labs: Building a basestation SoC for 5G communication.
Aheesa Digital Innovations: Creating networking SoCs for telecom.
Netrasemi: Designing edge-AI SoCs for smart vision and IoT.
Green PMU Semi: Developing energy harvesting power management ICs for IoT and sensing.
WiSig Networks: Working on a NarrowBand IoT SoC.
MosChip Technologies: Innovating smart energy meter ICs.
The DLI scheme is part of India’s broader $10 billion initiative launched in December 2021, aimed at nurturing the semiconductor ecosystem. The scheme provides financial incentives and infrastructure support for various stages of semiconductor development, including integrated circuits, chipsets, and system on chips. This support spans over five years, seeking to bolster India’s presence in the semiconductor sector.
Historically, India has played a significant role in chip design, with major semiconductor firms maintaining design offices in the country. However, these firms have predominantly worked on designs for international companies, leading to minimal intellectual property generation by Indian entities. The DLI scheme aims to address this gap by incentivizing the creation of intellectual property in the chip design domain.
Despite the promising outlook, the scheme’s progress appears slower than initially projected. The government’s goal is to support at least 100 start-ups over five years, translating to an average of 20 approvals per year. However, since the scheme’s inception, only 12 start-ups have been approved.
The IT Ministry has not yet responded to requests for comment on the scheme’s slower-than-expected rollout.
In addition to supporting start-ups, India recently approved its fifth semiconductor facility: an assembly and testing plant by Kaynes Semicon in Gujarat. This move aligns with India’s ambition to become a prominent player in the global semiconductor market, akin to the United States, Taiwan, and South Korea. The country has also greenlit a significant fabrication plant worth $11 billion by Tata Electronics in collaboration with Taiwan’s Powerchip, alongside three assembly plants by Tata, US-based Micron Technology, and Murugappa Group’s CG Power in partnership with Japan’s Renesas.
Several new proposals for semiconductor units are currently under review. These include a fabrication plant proposed by Israel’s Tower Semiconductor and the Adani Group, and a Rs 4,000 crore assembly plant by Zoho.
With nearly all of the $10 billion allocated under its semiconductor manufacturing incentive policy committed, the Indian government is now preparing for the scheme’s second phase. Plans include potentially increasing the programme’s budget to $15 billion, providing capital support for raw materials and gases used in chip manufacturing, and adjusting subsidies for assembly and testing plants. This strategic shift aims to further bolster India’s position in the semiconductor industry and stimulate continued growth and innovation.
