Explained | Mapping India’s chip design ecosystem
The story so far: As part of the second phase of the design-linked incentive scheme for the domestic semiconductor industry, the Indian government, according to media reports, is considering a proposal to pick an equity stake in domestic chip design-making companies. According to Pranay Kotasthane, Chairperson, High Tech Geopolitics Programme at Takshashila Institution, the government’s attempt to become a venture capital firm for chip design companies is likely to be “ineffective and inefficient”. Shivani Parashar, analyst at Counterpoint Research, told The Hindu that with an equity stake, the government offers an opportunity for design companies to align their interests with the project’s success, ensuring shared risk and reward. While the details are yet to be made public, he states, it is hoped that the reported scheme would live up to the expectations of the start-up ecosystem where the government would become a stakeholder in promising companies with a scalable potential to “create a state-of-the-art design ecosystem which will serve the national interest and also be a supplier to the rest of the world.”
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