Introduction
The Ministry of Electronics and IT (MeitY) has recently approved incentives for 12 Indian start-ups under the Design Linked Incentive (DLI) scheme.
This initiative aims to boost chip design capabilities and foster innovation within India’s semiconductor sector.
Overview of the Approvals
Twelve Start-Ups Approved: The government has cleared financial assistance for 12 start-ups focusing on diverse semiconductor designs, including microcontrollers, image sensors, and AI hardware accelerators.
Incentive Allocation: The approved projects will collectively cost Rs 342 crore, with the Centre committing close to Rs 133 crore. To date, over Rs 7 crore has been released.
DLI Scheme Applications: Out of 59 applications received under the DLI scheme, 12 have been approved, and 21 are still under review.
Scheme’s Purpose: The DLI scheme, part of a broader $10 billion semiconductor incentive program launched in December 2021, aims to support the development and deployment of semiconductor designs and technologies.
Future Plans: India seeks to become a major semiconductor hub, competing with leaders like the United States, Taiwan, and South Korea, and continues to attract foreign investments in chip manufacturing.
Details of Approved Start-Ups
The Ministry of Electronics and IT (MeitY) has approved proposals from the following start-ups:
- DV2JS Innovation: Developing an image sensor system on a chip for automotive applications.
- Vervesemi Microelectronics: Working on a microcontroller integrated circuit for industrial uses.
- Fermionic Design: Focused on creating a beamformer IC for satellite communication.
- Morphing Machines: Developing RISC-V multi-core accelerators for telecom applications.
- Calligo Technologies: Designing hardware accelerators for AI applications.
- Sensesemi Technologies: Creating a wearable SoC for healthcare.
- Saankhya Labs: Developing a base station SoC for 5G communication.
- Aheesa Digital Innovations: Working on networking SoCs for telecom.
- Netrasemi: Focused on edge-AI SoCs for smart vision and IoT.
- Green PMU Semi: Developing an energy-harvesting power management IC for IoT and sensing.
- WiSig Networks: Working on a NarrowBand IoT SoC.
- MosChip Technologies: Designing a smart energy meter IC.
Financial Support and Scheme Details
The total cost of the approved projects amounts to Rs 342 crore. The government has committed Rs 133 crore towards these initiatives, with Rs 7 crore already disbursed.
The DLI scheme provides financial incentives and infrastructure support for developing semiconductor designs, chipsets, and system-on-chips (SoCs) over five years.
Scheme’s Impact and Progress
India’s semiconductor sector has traditionally focused on designing systems for foreign companies, resulting in limited intellectual property creation domestically.
The DLI scheme aims to address this by incentivizing the development of proprietary designs and innovations.
Despite the scheme’s potential, its implementation has been slower than anticipated. The government initially aimed to support 100 start-ups over five years, averaging 20 per year. So far, only 12 start-ups have received approval.
Recent Developments in India’s Semiconductor Sector
Earlier this week, India approved its fifth semiconductor unit, an assembly and testing plant by Kaynes Semicon in Gujarat.
This plant will enhance the country’s semiconductor manufacturing capabilities. The Indian government has also approved an $11 billion fabrication plant by Tata Electronics in partnership with Taiwan’s Powerchip, and three chip assembly plants by Micron Technology, the Tata Group, and Murugappa Group’s CG Power in collaboration with Japan’s Renesas.
Future Prospects
India is aiming to position itself as a major player in the global semiconductor industry.
The government is also considering further investments in the sector, including a potential second phase of the semiconductor incentive program.
This phase could increase the funding to $15 billion, offer capital support for raw materials and gases used in chip manufacturing, and adjust subsidies for assembly and testing plants.
Conclusion
India’s semiconductor sector is experiencing significant growth, supported by new projects and government incentives.
The approval of 12 Indian Start-Ups for Semiconductor under the DLI scheme marks a substantial step towards enhancing domestic chip design capabilities.
As India continues to attract foreign investments and expand its semiconductor infrastructure, the country is on track to become a key player in the global semiconductor market.
