India’s semiconductor design push under the Design-Linked Incentive (DLI) scheme is beginning to show on-ground results, with multiple startup-developed chip designs now moving beyond blueprint stage into actual fabrication at global foundries, including advanced-node facilities, as per news reports.
The government informed the Lok Sabha that seven chip designs built by startups supported under the DLI scheme have been successfully fabricated.
These include chips produced at advanced nodes such as 12 nm through leading international foundries. In total, 16 designs have completed tape-out and have been sent for manufacturing.
Tape-out marks the final transfer of a completed chip layout to a fabrication facility for silicon production. The electronics ministry added that around 100 fabless chip design firms have been given access to advanced design infrastructure, together recording about 5.5 million hours of tool usage.
Launched in 2022, the chip design incentive scheme has approved 24 projects with a combined project size of about ₹900 crore.
These cover applications such as surveillance systems, drone detection, energy metering, processors, satellite communications and broadband and IoT chips.
The supported portfolio has generated 10 patent filings and more than 140 reusable semiconductor IP cores. Investor traction is also building, with 13 participating firms raising venture capital to scale and commercialise their products, at over three times the incentive support released.
Alongside startups, the Chips to Startup initiative is enabling institutions to design indigenous chips. Over 120 chip designs have been submitted by 46 institutions for fabrication at the government semiconductor lab in Mohali, with 56 already fabricated and returned after packaging.
More than 75 patents have emerged from this track, and over 100 chip projects remain under development. The next phase of the DLI framework will align with the upcoming India Semiconductor Mission expansion, which targets capabilities in advanced nodes such as 3 nm and 2 nm by 2032.
Read More: Semicon India Programme Approves 10 Projects as IT Sector Revenue Reaches $283 Billion!
With fabricated chips, growing IP output and rising investor participation, the DLI-backed semiconductor design ecosystem is moving from early support to execution and scale.
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Published on: Feb 5, 2026, 2:39 PM IST

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