Semiconductor Design Linked Incentive Boosts Local Chip

Ø  DLI Scheme-backed Chip Design Startup - Aheesa Digital Innovations Achieved First-Pass Silicon Success With ‘VIHAAN’, a Broadband Chip Built Using the Indigenous VEGA Microprocessor

Ø  VIHAAN Aims to Bring Fibre Broadband to Indian Homes and Has Attracted VC Funding from the Tamil Nadu Infrastructure Fund Management Corporation (TNIFMC) and Other Investors

Ø  DLI Scheme-backed Companies Have Cumulatively Raised Over $100 Million in VC Funding and Achieved 35 Design Tape-outs

1.    Chip design is a major value driver: Semiconductor design contributes up to 50% of value addition across the semiconductor value chain and accounts for around 15–35% of the BOM cost of electronic products.

2.    DLI Scheme supports Indian startups: The Design Linked Incentive (DLI) Scheme is helping Indian startups develop semiconductor designs for strategic and commercial applications.

3.    Wide range of applications: Supported designs cover satellite communications, drones, surveillance, defence and aerospace, automotive, IoT, AI systems, telecom equipment, LED drivers and smart meters.

4.    Aheesa Digital Innovations achieves breakthrough: Chennai-based fabless startup Aheesa Digital Innovations has achieved first-pass silicon success for VIHAAN, a networking System-on-Chip (SoC) designed specifically for fibre broadband.

5.    VIHAAN moves toward production: After successful tape-out and silicon validation, VIHAAN will proceed toward production tape-out targeted for 2027.

6.    Focus on domestic broadband requirements: With India's rapid expansion of optical fibre, 5G and broadband infrastructure, domestically designed networking chips are becoming increasingly important.

7.    Strong investor confidence: Aheesa raised around ₹40 crore from the Tamil Nadu Infrastructure Fund Management Corporation (TNIFMC) through the Tamil Nadu Emerging Sector Seed Fund (TNESSF) and private investors.

8.    DLI support helping startups scale: Funding received following DLI approval demonstrates increasing investor confidence in India's ability to develop advanced semiconductor products domestically.

9.    Chip-design tools widely available: Government semiconductor programmes have provided advanced chip-design tools to 455 organisations, including 350 academic institutions and 105 startups.

10.  More than 30 DLI tape-outs: Companies supported under the DLI Scheme have collectively achieved over 30 chip-design tape-outs across different foundries.

11.  Growing venture capital investment: DLI-supported companies have raised more than US$100 million in venture capital, indicating increasing private-sector confidence in Indian semiconductor design.

12.  C2S Programme builds talent: Under the Chips to Startup (C2S) Programme, 245 chip designs have been taped out by 71 academic institutions, supporting the development of India's future semiconductor workforce.

13.  Other indigenous chip successes:

·         Vervesemi Microelectronics: Achieved first-pass silicon success for a BLDC motor-controller chip using an indigenous microprocessor and motor-driver technology.

·         Netrasemi: Successfully tested a 12nm Vision SoC with integrated video-analytics acceleration.

·         OptoML: Received its 12nm compute-in-memory SoC, aimed at faster and more power-efficient AI processing.

·         Mindgrove Technologies: Partnered with PRAMA India to explore deployment of its Vision SoC in CCTV surveillance cameras.

·         IndieSemiC: Secured global certification for its Bluetooth/BLE 6 chip module.

14.  Building the entire semiconductor value chain: India's semiconductor strategy extends beyond chip design to fabrication, advanced packaging, equipment, materials, R&D and skilled manpower.

15.  Semicon 2.0 provides major boost: Approved in July 2026 with an outlay of ₹1,27,500 crore, Semicon 2.0 aims to take India's semiconductor ecosystem to the next stage and create a globally competitive industry.

16.  Shift from laboratory to commercialisation: Indian chip designs are increasingly progressing from design to fabrication, testing, validation and customer trials, indicating greater technological maturity.

17.  Towards volume production: As silicon-validated designs progress into volume manufacturing, Indian semiconductor companies could emerge as credible global suppliers, while reducing dependence on imported technology and strengthening domestic supply chains.

Key Takeaway

India's semiconductor strategy is moving from chip-design capability to commercial semiconductor production. The DLI and C2S programmes are creating a pipeline of indigenous designs, startups, investment and talent, while Semicon 2.0's ₹1.275 lakh crore outlay aims to build an end-to-end semiconductor ecosystem and strengthen India's position as a global chip-design and manufacturing hub.

 

[ABS News Service/17.08.2026]

Semiconductor chip design is a critical value driver across the semiconductor value chain, contributing up to 50% of overall value addition and accounting for approximately 15–35% of the Bill of Materials (BOM) cost of electronic products.

Recognising the pivotal role of semiconductor design in the country’s strategic technological ambitions, the Design Linked Incentive (DLI) Scheme is supporting Indian Startups for designing chips for a wide range of strategic and commercial applications. These include satellite communications, drones, surveillance cameras, Defence and Aerospace Systems, Automotive, Internet of Things (IoT) devices, LED drivers, AI systems, Telecom Equipment, and Smart Meters.

Aheesa Digital Innovations

Headquartered in Chennai, Aheesa is an Indian fabless semiconductor startup that designs chips for broadband networking and security. Taped out on Republic Day and achieving first-pass silicon success on Independence Day this year, ‘VIHAAN’ - a networking System-on-Chip (SoC) purpose-built for Fibre Broadband- will now proceed towards production tape-out, targeted for 2027.

As India expands its digital infrastructure through optical fibre, 5G, and broadband-led services, the need for domestically designed semiconductor solutions is growing. Aheesa, through its VIHAAN series, successive funding milestones, and active support from the DLI Scheme, is positioned to serve this need.

Investor Confidence - Supporting India’s Deep-Tech Innovation to Scale Global Solutions

Earlier this year, Aheesa raised about ₹40 crore from TNIFMC through the Tamil Nadu Emerging Sector Seed Fund (TNESSF) and other private investors to accelerate product development and support the company’s growth in the semiconductor space. These successive rounds of funding after approval under the DLI Scheme reflects growing confidence of investors in Aheesa's ability to deliver advanced broadband silicon solutions from India.

Government support helping Indian chip companies move from idea to product

Aheesa’s achievement is part of a larger transformation taking place in India’s semiconductor design ecosystem. Through the Government’s semiconductor programmes, state-of-the-art chip-design tools made available to 455 organisations, including 350 academic institutions and 105 startups, enabling students, researchers and companies across the country to design chips.

Companies supported under the DLI Scheme have cumulatively achieved over 30 chip design tape-outs across various foundries and raised more than US$100 million in VC funding, demonstrating growing investor confidence in India’s semiconductor design capabilities. Under the Chips to Startup (C2S) Programme, 245 chip designs have been taped out by 71 academic institutions, to meet future workforce requirements.

Other recent successes under the Scheme

1. Vervesemi Microelectronics achieved first-pass silicon success of BLDC Motor Controller chip using indigenous microprocessor by Incore Semiconductor and its Motor Driver chip.

2. Netrasemi successfully tested 12nm Vision SoC with integrated video analytics acceleration.

3. OptoML received its 12nm ‘compute-in-memory’ SoC, which makes AI processing faster and power-efficient.

4. Mindgrove Technologies announced a partnership with PRAMA India to explore the usage of its Vision SoC in CCTV surveillance cameras.

5. IndieSemiC secured global certification for its Bluetooth (BLE 6) chip module.

Building an Indian semiconductor ecosystem

The Government’s semiconductor initiatives are aimed not merely at designing individual chips, but at building an ecosystem covering the entire semiconductor value chain — from chip design and manufacturing to advanced packaging, equipment, materials, research and development, and skilled manpower. With Semicon 2.0, approved with an outlay of ₹1,27,500 crore in July 2026, India is taking this effort to the next level, with the objective of building a globally competitive semiconductor ecosystem.

The progress of companies such as Aheesa Digital Innovations demonstrates that Indian semiconductor designs are increasingly moving beyond the laboratory. Chips designed in India are now being fabricated, tested, validated, and prepared for customer trials. As the ecosystem matures, silicon-validated designs will move towards volume manufacturing, positioning Indian companies as credible global suppliers while strengthening domestic supply chains and self-reliance.