DLI-backed chip firms raise $100m, clock 35 tape-outs

The programme supports startups designing chips for applications ranging from satellite communications, drones and defence systems to automobiles, IoT devices, AI, telecom equipment, surveillance cameras and smart meters.

NEW DELHI: India’s effort to build a home-grown semiconductor design ecosystem is beginning to move from prototypes to investible products, with companies supported under the Design Linked Incentive (DLI) scheme cumulatively raising over $100 million in venture capital and completing 35 chip-design tape-outs.The latest milestone came from Chennai-based fabless semiconductor startup Aheesa Digital Innovations, whose ‘VIHAAN’ networking System-on-Chip achieved first-pass silicon success on Independence Day after being taped out on Republic Day this year. The chip, designed for fibre broadband networking, will now move towards production tape-out targeted for 2027.A tape-out marks the stage when a completed chip design is sent for fabrication, while first-pass silicon success means the fabricated chip worked as intended in its first iteration — an important step before commercial production.Aheesa, which develops chips for broadband networking and security, raised around Rs 40 crore earlier this year from TNIFMC through the Tamil Nadu Emerging Sector Seed Fund and other private investors. The govt said the funding reflected growing investor confidence in Indian semiconductor design companies backed by the DLI scheme.The programme supports startups designing chips for applications ranging from satellite communications, drones and defence systems to automobiles, IoT devices, AI, telecom equipment, surveillance cameras and smart meters.Govt-backed design infrastructure has also expanded. Advanced chip-design tools have been made available to 455 organisations — 350 academic institutions and 105 startups. Separately, under the Chips to Startup programme, 71 academic institutions have completed 245 chip-design tape-outs aimed at developing future semiconductor talent.Other DLI-backed companies have also reported recent milestones. Vervesemi Microelectronics achieved first-pass silicon success for a BLDC motor-controller chip using an indigenous processor from Incore Semiconductor, while Netrasemi tested a 12nm Vision SoC with integrated video-analytics acceleration. OptoML received its 12nm compute-in-memory SoC aimed at faster, more power-efficient AI processing.Mindgrove Technologies has partnered PRAMA India to explore the use of its Vision SoC in CCTV cameras, while IndieSemiC secured global certification for its Bluetooth Low Energy 6 chip module.Chip design is among the highest-value segments of the semiconductor chain, contributing up to half of overall value addition and accounting for about 15-35% of the bill-of-materials cost of electronic products.The developments come as govt expands its semiconductor push under Semicon 2.0, approved in July with an outlay of Rs 1.27 lakh crore. The broader programme seeks to build capabilities across design, fabrication, packaging, equipment, materials, R&D and skilled manpower — with the next challenge being to convert more India-designed chips from validated silicon into volume manufacturing and global supply contracts.