A semiconductor startup hit a major milestone after successfully testing its own locally designed broadband internet chip. The first-pass silicon success of the VIHAAN chip means it worked correctly on the very first try, a key step toward mass production and greater self-reliance in semiconductors for India. This update came even as Prime Minister Narendra Modi highlighted the country’s push to build domestic chip-making capacity.
A Design Linked Incentive (DLI) Scheme-backed Indian semiconductor startup has achieved first-pass silicon success with ‘VIHAAN’, an indigenous broadband networking System-on-Chip (SoC) built using the VEGA microprocessor.
The Ministry of Electronics and IT (MeitY) said on Saturday (August 15) that the milestone marks a key step toward taking the chip into production.
One of the interesting fact is that the Chennai-based Aheesa Digital Innovations, a fabless semiconductor startup, taped out VIHAAN on Republic Day (January 26) and achieved first-pass silicon success on Independence Day (August 15) this year. The chip, designed for fibre broadband applications, will now proceed towards a production tape-out targeted for 2027, the ministry said in a release.
VIHAAN: Bringing fibre broadband to Indian homes
VIHAAN is a networking SoC purpose-built for fibre broadband. It aims to support India’s push to expand optical fibre networks, 5G services and broadband-led applications in homes and businesses.
By designing such chips domestically, India can reduce dependence on imported silicon for critical networking equipment. Aheesa, through its VIHAAN series, successive funding milestones and active support from the DLI Scheme, is positioned to serve this growing need.
Rs 40 crore funding to accelerate product development
Earlier this year, Aheesa raised about Rs 40 crore from the Tamil Nadu Infrastructure Fund Management Corporation (TNIFMC) through the Tamil Nadu Emerging Sector Seed Fund (TNESSF) and other private investors. The funding is aimed at accelerating product development and supporting the company’s growth in the semiconductor space, according to the ministry.
These successive rounds of funding after approval under the DLI Scheme reflect growing confidence of investors in Aheesa’s ability to deliver advanced broadband silicon solutions from India.
The government said semiconductor chip design is a critical value driver across the semiconductor value chain. It contributes up to 50% of overall value addition and accounts for around 15–35% of the bill of materials (BOM) cost of electronic products.
This means that even without immediate large-scale fabs, strengthening domestic chip design can capture a significant share of the economic value in electronics manufacturing. For companies like Aheesa, success in designing and producing indigenous SoCs can translate into higher margins, stronger intellectual property portfolios and better positioning in global supply chains.
VIHAAN Chip (Source: Aheesa website)
Five to eight new semiconductor plants planned as India pushes chip self-reliance
India is expected to see another five to eight semiconductor plants begin operations over the next seven to eight years, underlining the government’s push to build domestic chip manufacturing capacity as a key pillar of its self-reliance and development agenda, Prime Minister Narendra Modi said on Saturday. Addressing the nation from the Red Fort on the 80th Independence Day, PM Modi said three major semiconductor plants had already been started in the country and that production from these facilities had begun to be exported.
PM emphasised that semiconductors have become indispensable across electronic goods, medical equipment and transportation systems, with the functioning of the modern technology ecosystem increasingly dependent on chips.
“Bharat has begun establishing its own semiconductor manufacturing capacity” in the direction of becoming self-reliant, PM Modi said, adding that the expansion of domestic chip production would provide a “great highway” towards building a developed India.
‘DLI Scheme’: Over 30 tape-outs, $100 million raised
The development comes as India’s semiconductor design ecosystem expands under the DLI Scheme. The government said companies supported under the scheme have cumulatively achieved more than 30 chip design tape-outs across various foundries and raised over USD 100 million in venture capital funding.
These figures indicate that policy support is beginning to translate into tangible design activity and private capital formation. For investors, the combination of government incentives, a growing pipeline of tape-outs and early silicon successes such as VIHAAN makes the Indian chip-design sector an increasingly attractive bet.
Chips to startup programme: 245 designs from academia
Under the Chips to Startup (C2S) Programme, 245 chip designs have been taped out by 71 academic institutions. This effort is aimed at meeting future workforce requirements and creating a pipeline of trained engineers and designers for the industry.
From a business perspective, this academic pipeline helps reduce talent costs and recruitment risks for companies like Aheesa. A steady supply of trained designers also makes India more attractive for global semiconductor firms looking to set up or expand design centres in the country.
Tools access for 455 organisations
The ministry said chip-design tools have been made available to 455 organisations, including 350 academic institutions and 105 startups, through government semiconductor programmes. Access to expensive electronic design automation (EDA) tools is a major cost barrier for early-stage chip startups.
By lowering this barrier, the government is effectively reducing the capital intensity of entering the chip-design business. For startups, this means more of their funding—such as Aheesa’s Rs 40 crore—can be directed toward product development, talent and market expansion rather than tool licensing.
Other recent successes under the DLI Scheme
The ministry highlighted other recent developments under the scheme, including:
- First-pass silicon success of a Brushless Direct Current (BLDC) motor controller by Vervesemi Microelectronics, using an indigenous microprocessor by Incore Semiconductor and its motor driver chip.
- Successful testing of a 12nm Vision SoC with integrated video analytics acceleration by Netrasemi.
- Receipt of a 12nm “compute-in-memory” SoC by OptoML, which makes AI processing faster and more power-efficient.
- A partnership between Mindgrove Technologies and PRAMA India to explore the usage of Mindgrove’s Vision SoC in CCTV surveillance cameras.
- Global certification for a Bluetooth (BLE 6) chip module by IndieSemiC.
These examples show that the DLI Scheme is supporting a diversified portfolio of chip designs—from motor controllers for appliances and electric vehicles to vision processors for AI, imaging and surveillance applications. For investors and industry partners, this diversification spreads risk and creates multiple potential growth engines within the Indian semiconductor ecosystem.
Strategic applications: From defence to smart meters
Recognising the pivotal role of semiconductor design in the country’s strategic technological ambitions, the DLI Scheme is supporting Indian startups to design chips for a wide range of strategic and commercial applications.
These include:
- Satellite communications
- Drones and surveillance cameras
- Defence and aerospace systems
- Automotive electronics
- Internet of Things (IoT) devices
- LED drivers
- AI systems
- Telecom equipment
- Smart meters
This broad application base means that successful Indian chip designs can find markets not only in consumer electronics but also in defence, infrastructure and industrial segments.
Building an Indian semiconductor ecosystem
The government said its 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 Rs 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 massive outlay signals long-term policy commitment and is likely to attract more domestic and foreign investment into fabs, packaging units, equipment suppliers and design houses.
For companies like Aheesa, Semicon 2.0 could mean easier access to local manufacturing and packaging partners in the future, shorter supply chains and lower logistics costs. Over time, this could improve margins and make Indian-designed chips more competitive against imports.
VIHAAN’s path to market and revenue
VIHAAN is designed for fibre broadband applications, a segment that is expanding rapidly as India pushes high-speed connectivity to homes and businesses. If the chip reaches production tape-out in 2027 as planned, Aheesa could begin commercial shipments soon after, subject to customer qualification and volume manufacturing arrangements.
Success in this segment would allow Aheesa to tap into revenue streams from broadband equipment makers, telecom service providers and potentially government-backed connectivity projects. Given that chip design can account for a large share of value addition, a successful VIHAAN product line could generate significant revenues relative to the company’s current funding base. 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. VIHAAN’s journey—from Republic Day tape-out to Independence Day silicon success, and now toward a 2027 production tape-out—is a concrete example of that shift.