DLI-Backed Chip Designer Vervesemi Raises $10M, Tapes Out 5 Strategic Chips

India's semiconductor ambitions are gathering pace as the Design Linked Incentive (DLI) Scheme under the Semicon India Programme backs domestic chip designers moving from concept to silicon — and now, to global markets.

Semiconductor chip design is a critical value driver across the value chain, defining system architecture, performance, functionality and security. It contributes up to 50% of overall value addition and accounts for 15–35% of the bill of materials (BOM) cost of electronic products — making design capability central to technological sovereignty.

24 DLI-Approved Design Projects, 400+ Institutions on Tools

Recognising the strategic importance of chip design, the DLI Scheme has approved 24 semiconductor design projects from domestic startups and MSMEs for financial support.

These companies are developing chips for a range of high-impact applications, including:

• Satellite communications

• Drones and avionics

• Surveillance systems

• Internet of Things (IoT) devices

• LED drivers

• AI systems

• Telecom equipment

• Smart meters

To strengthen ecosystem capacity, more than 400 organisations — including over 100 startups and 300 academic institutions — have been granted access to advanced Electronic Design Automation (EDA) tools hosted centrally at C-DAC Bengaluru.

Collectively, users have clocked 2.25 crore hours of tool usage, creating one of the largest semiconductor design user bases globally.

Vervesemi: From DLI Approval to Silicon and Series A

Among the DLI beneficiaries, Vervesemi Microelectronics stands out as the first company approved under the Government of India's DLI Scheme. It is also supported under the Chips to Startup (C2S) programme.

Founded in 2017 by industry veterans, Vervesemi has built:

• Over 140 IP blocks

• 25 IC products

• 10 patents

• 5 trade secrets

The company develops chips for space, defence, industrial automation and smart energy applications.

Five Strategic Chips Fabricated

Vervesemi has already taped out and fabricated multiple chips across foundries such as UMC and TSMC:

1. Data Acquisition Avionic Chip (55nm, UMC)

   • Application: Space systems

   • Status: Fabricated, under customer evaluation

   • Target production: Q1 2027

2. BLDC Controller Chipset (110nm, UMC)

   • 90% indigenous BOM

   • Uses indigenous RISC-V microprocessor

   • Applications: Fans, exhaust systems, solar, power inverters

   • Target production: Q4 2026

3. Precision Motor-Control Chip with RISC-V (55nm, UMC)

   • Applications: Drones, EVs, industrial automation

   • Status: Fabricated, under testing

   • Target production: Q3 2026

4. Energy Metering Chip (180nm, TSMC)

   • Application: Smart energy meters

   • Status: Fabricated and tested

   • Target production: Q4 2026

5. Bridge Applications Chip (180nm, TSMC)

   • Application: Weighing scales, force-touch systems

   • Status: Fabricated and tested

   • Target production: Q3 2026

$10 Million Series A Signals Investor Confidence

Vervesemi announced the raising of $10 million (₹90 crore) in a Series A round led by investor Ashish Kacholia and Unicorn India Ventures, with participation from Roots Ventures, Caperize Fina and MAIQ Growth Scheme.

The funds will be deployed across three strategic areas:

1. Commercialisation Acceleration

   • Scaling machine learning-enhanced analog signal chain chips

   • Advanced data converters

   • Intelligent power and sensing solutions

2. Production Readiness and Global Expansion

   • Silicon qualification

   • Expansion of engineering and applications teams

   • Serving global OEMs

3. R&D and IP Expansion

   • Next-generation precision analog architectures

   • Market expansion across Asia and the United States

The investment signals growing investor confidence in DLI-backed companies, reflecting improved commercial viability and structured government support.

From Policy to Product: A Design-Led Vision

The BLDC motor controller project was awarded to Vervesemi by Union Minister Shri Ashwini Vaishnaw on 20 March 2025.

At the time, the Minister articulated a three-pronged vision for India to become a product nation:

• Transition from a service economy to a product-driven innovation economy

• Build a broad-based ecosystem involving academia, startups and researchers

• Pursue full-spectrum development — from high-volume deployment chips like BLDC controllers to high-value strategic platforms such as RISC-V-based CPU and GPU architectures

Less than a year later, Vervesemi's multiple tape-outs, silicon validation and fresh capital infusion illustrate tangible progress under the DLI framework.

Anchoring India in Strategic Chip Design

As DLI-supported firms move from design to productisation, silicon-validated chips are expected to transition into volume manufacturing and deployment.

This strengthens:

• Domestic supply chains

• Resilience against global supply disruptions

• Indigenous capability in defence, telecom, AI and mobility

• Long-term economic growth

By focusing on design — the highest value-added segment of the semiconductor chain — India is positioning itself as a credible global supplier while reducing dependence on imports.

The DLI Scheme marks a decisive step in anchoring India within the strategic chip design ecosystem, translating policy intent into silicon, investment and global market presence.