India’s Chip Design Ecosystem Strengthens As DLI‑Backed Startups Gain Investor Interest

India’s semiconductor design ecosystem is strengthening as startups supported under the Design Linked Incentive Scheme gain visibility among investors and users. The sector has traditionally faced long development cycles, high R&D costs and elevated technical risk, often limiting early‑stage investment.

Prior to 2021, venture capital participation in semiconductor design was modest due to these hurdles. The DLI Scheme introduced in 2022 has helped reduce risk and improve confidence through structured financial and technical support.

DLI Scheme’s Role in De‑Risking Semiconductor Innovation

The Government of India launched the DLI Scheme in 2022 to address barriers in semiconductor design. The scheme reduces upfront risk by offering financial support, access to advanced EDA tools, and essential IP assets.

Startups are selected through a rigorous screening process conducted by technical and industry experts. This framework enhances credibility, improves commercial readiness and increases investor willingness to evaluate deep‑tech companies.

Growing Investor Interest In DLI‑Supported Startups

The structured support offered under the DLI Scheme has led to greater confidence from the investment community. The availability of advanced design infrastructure and specialised tools has made early‑stage semiconductor startups more attractive.

The scheme also expands awareness of semiconductor design potential within India. As a result, investors are actively assessing companies supported under the initiative, encouraged by the reduced risk profile.

C2i Semiconductors: A Case Study Within the DLI Framework

C2i Semiconductors was incorporated in Bengaluru on 5 June 2024 by a founding team with decades of experience at major global semiconductor firms. The company received approval for DLI support effective 1 November 2024, enabling access to advanced chip design tools and financial assistance.

With industry veteran Ganapathy Subramanyam on its Board, C2i is developing power‑management semiconductor solutions for next‑generation AI data centres and cloud infrastructure. The company has ramped up to 65 engineers and is now among the top three users of the centralised EDA tools available through the ChipIN Centre.

Impact Of Centralised EDA Infrastructure Under DLI

Centralised EDA access has become a major enabler for emerging semiconductor startups. C2i’s strong utilisation of these tools reflects the increasing design activity supported through the DLI ecosystem.

The availability of these resources helps reduce cost barriers, accelerate design cycles and strengthen India’s design capabilities. The growing number of active users highlights the scheme’s role in boosting domestic semiconductor innovation.

Read More: India Crosses 2 Lakh Startups.

Conclusion

India’s semiconductor chip design ecosystem is benefiting from systematic support under the DLI Scheme. Startups now have access to critical tools, expert evaluation and reduced development risk.

Investor engagement has improved as commercially viable design ventures gain visibility. With companies like C2i scaling rapidly, India’s deep‑tech semiconductor landscape is poised for continued expansion.

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