If you're smart you can develop a prototype for far less than you would think.When I was actively taking products from concept through production I could do it for under $10,000.
But if you're talking chip set design that's in a whole new category. It really makes no sense to get that in detail now a days since it's really hard to achieve scale and bring the costs down. Off the shelf components are much cheaper, you would be amazing at how cheaply you can buy parts with a little creativity and negotiation skills. If you want to do chip set design, you need to first find a company that needs the chip, design it, and then establish a relationship with a fab and have a minimum order in hand. It's not that hard once you learn how to handle and manage the channel.
It's a very broad area, can't really help you without more details on the specific area you are thinking about.
As an aside, I've moved from hardware to web/mobile software (taught myself iOS, php, and rails) because I got tired of dealing with all the new regulations and hurdles. So be warned before starting a project.