Government Approves 105 Chip Design Firms For EDA Tool Support

New Delhi, Aug 8 (KNN) The government has approved 105 semiconductor chip design companies for advanced Electronic Design Automation (EDA) tools under the Design Linked Incentive (DLI) Scheme, while 24 projects have received financial support as part of the Semicon India Programme, the Rajya Sabha was informed.

DLI Scheme Expands Support For Chip Design Ecosystem
Launched in 2022 under the Semicon India Programme, the DLI Scheme supports domestic companies, startups and MSMEs engaged in semiconductor chip design.

Between FY 2022 and FY 2026, the government received 115 applications seeking financial assistance, of which 24 were approved and 91 rejected. No application is currently pending for financial support.

For EDA tool support, 144 applications were received during the period, with 105 approved, 30 rejected, and none pending for scrutiny.

The Ministry of Electronics and Information Technology said it continues to invite applications for EDA tools on a rolling basis.

Government Addresses Funding And Market Access Challenges
The government identified limited access to seed and scale-up capital, inadequate opportunities for market linkages, and the need for product qualification, certification and customer validation as key challenges facing semiconductor startups.

To improve market access, the ministry has been engaging with startups, global companies, electronics manufacturers, foundries, packaging partners and venture capital firms through stakeholder consultations, buyer-seller interactions and the annual SEMICON India Conference.

Supported Firms Attract Investment And Achieve Chip Tape-Outs
According to the ministry, DLI-supported companies have attracted venture capital investments worth more than four times the financial assistance disbursed under the scheme, reflecting investor confidence in their technological capabilities and commercial potential.

The supported firms have also entered into collaborations with electronics manufacturers, foundries and packaging companies, resulting in the successful tape-out of 25 chip designs across multiple foundries and strengthening their integration into domestic and global semiconductor value chains.

SEMICON 2.0 Broadens Scope Of Government Support
Building on the programme's first phase, the Union Cabinet approved Semicon 2.0 on July 15, 2026, with a fiscal outlay of Rs 1,27,500 crore.

The programme focuses on six strategic pillars: chip design, machines and materials, semiconductor fabrication units (fabs), ATMP/OSAT facilities, research and development, and talent development.

The government said Semicon 2.0 expands capital support for semiconductor design, extends eligibility beyond startups and MSMEs, and allows participation by companies owned and controlled by Overseas Citizens of India (OCIs), with the aim of strengthening India's position in global semiconductor supply chains.

(KNN Bureau)