23 Chip-Design Projects Approved for Financial Support under Design Linked Incentive (DLI) Scheme
The Indian government has announced a significant investment in the semiconductor sector, approving the ‘Semicon India Programme’ with a budget of ₹76,000 crore. This initiative aims to foster a robust semiconductor and display manufacturing ecosystem within the country. A key component of this program is the ‘Design Linked Incentive (DLI) Scheme,’ which has been allocated ₹1,000 crore to bolster domestic companies, startups, and MSMEs engaged in semiconductor design.
Overview of the Semicon India Programme
The Semicon India Programme represents a strategic move by the government to enhance the country’s capabilities in semiconductor manufacturing. With a total outlay of ₹76,000 crore, this initiative seeks to create a comprehensive ecosystem that supports the design and production of semiconductors and display technologies. The program is designed to address the growing global demand for semiconductor products, which are critical for various industries, including electronics, automotive, and telecommunications. By investing in this sector, the government aims to reduce dependency on imports and position India as a competitive player in the global semiconductor market.
Details of the Design Linked Incentive Scheme
The DLI Scheme is a vital part of the Semicon India Programme, specifically aimed at supporting domestic innovation in semiconductor design. With an allocation of ₹1,000 crore, the scheme provides essential resources to help companies overcome the high entry barriers associated with semiconductor development. Key features of the DLI Scheme include design infrastructure support, which offers access to Electronic Design Automation (EDA) tools and Intellectual Property (IP) cores. Additionally, the scheme provides financial incentives covering up to 50% of eligible costs for design prototyping, with a cap of ₹15 crore per application. Furthermore, companies can receive incentives based on their net sales turnover over five years, with a maximum limit of ₹30 crore per application for the commercialization of chip solutions.
Progress and Achievements Under the DLI Scheme
Since its launch in December 2021, the DLI Scheme has made notable progress in fostering semiconductor design in India. A total of 278 academic institutions and 72 startups have been granted access to advanced EDA tools, facilitating their design efforts. Additionally, 23 firms have received financial support for developing chips for various applications, including surveillance cameras and microprocessors. Notably, ten companies have successfully secured venture capital funding to scale up their design prototypes, while six companies have completed prototype tape-outs at semiconductor foundries. Recently, 20 chip designs from 17 academic institutions were successfully fabricated by SCL in Mohali, marking a significant milestone in the program’s implementation.
Future Directions and Stakeholder Engagement
The DLI Scheme is designed to evolve in response to the needs of its stakeholders. The government is committed to working closely with beneficiary companies to ensure that the scheme remains relevant and effective. Modifications will be made based on feedback and changing requirements within the semiconductor industry. A total project outlay of ₹803.08 crore has been approved under the DLI Scheme, which includes the cost of EDA tools. The release of funds is contingent upon the achievement of specific milestones, including the deployment of chips. This collaborative approach aims to create a sustainable and innovative semiconductor ecosystem in India, ultimately contributing to the country’s economic growth and technological advancement.
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