The government has the vision to create a vibrant ecosystem for semiconductor chip design in the country. For this, the Ministry of Electronics and Information (MeitY) is seeking applications from 100 domestic companies, Startups and MSMEs under its Design Linked Incentive (DLI) Scheme. The government announced this scheme in December last year.
Under the scheme, a part of the Rs 76,000 crore package, extends financial incentives and design infrastructure support to domestic companies, Startups and MSMEs across various stages of development and deployment of semiconductor design for integrated circuits (ICs), chipsets, system on chips (SoCs), systems and IP cores and semiconductor linked design for over five years.
The scheme aims to nurture at least 20 domestic companies involved in semiconductor design and facilitate them to achieve a turnover of more than Rs 1500 crore in the next five years. The scheme has three components – Chip Design infrastructure support, Product Design Linked Incentive and Deployment Linked Incentive.
Centre for Development of Advanced Computing (C-DAC), a scientific society operating under MeitY, will serve as the nodal agency for the implementation of the DLI scheme. Under the Chip Design infrastructure support, C-DAC will set up the India Chip Centre to host the state-of-the-art design infrastructure (like EDA Tools, IP Cores and support for MPW (Multi Project Wafer fabrication) and post-silicon validation) and facilitate its access to supported companies.
Under the Product Design Linked Incentive component, reimbursement of up to 50% of the eligible expenditure subject to a ceiling of Rs 15 crore per application will be provided as financial support to the approved applicants who are engaged in semiconductor design.
Under the Deployment Linked Incentive component, the government will provide an incentive of six per cent to four per cent of net sales turnover over five years subject to a ceiling of Rs 30 crore per application to approved applicants whose semiconductor design for ICs, chipsets, SoCs, systems and IP cores and semiconductor linked design are deployed in electronic products.
The DLI Scheme will also take a graded and pre-emptive approach to identify the products of national priorities and implement strategies for their complete or near-complete indigenisation and deployment, thereby taking steps towards the import substitution and value addition in strategic and societal sectors.
