The Government of India has sanctioned 23 chip-design projects under the Design Linked Incentive (DLI) Scheme as part of its effort to boost the country’s semiconductor design capabilities. These projects, led by domestic companies, startups, and MSMEs, will receive financial assistance to develop chip solutions for areas such as surveillance cameras, energy meters, microprocessor IPs, and networking applications.
The announcement was made in the Lok Sabha by Union Minister of Electronics and Information Technology, Jitin Prasada. The DLI Scheme is a component of the larger ₹76,000 crore ‘Semicon India Programme’, which aims to establish a comprehensive semiconductor and display manufacturing ecosystem in the country. Of this, ₹1,000 crore has been allocated specifically to support semiconductor design through the DLI initiative.
Recognising the challenges posed by high entry barriers and lengthy development cycles in semiconductor design and commercialization, the DLI Scheme offers a combination of design infrastructure and financial incentives. These include support for early-stage prototyping through access to Electronic Design Automation (EDA) tools and IP cores, as well as funding for design, scaling, and production. Companies are eligible for reimbursement of up to 50 percent of project costs, with a cap of ₹15 crore per application. Additionally, incentives of 4 to 6 percent of net sales turnover over five years are offered to aid commercialization, with a ceiling of ₹30 crore per application.
Since its launch in December 2021, the scheme has seen the participation of 278 academic institutions and 72 startups that now have access to advanced EDA tools. Among the notable achievements, 20 chip designs from 17 academic institutions have been successfully fabricated at the Semiconductor Laboratory (SCL) in Mohali. Six companies have already completed prototype tape-outs at global semiconductor foundries, and ten startups have raised venture capital funding to support the commercial scaling of their innovations.
A total project outlay of ₹803.08 crore has been approved under the scheme, which includes the cost of EDA tools. The disbursement of funds is tied to the achievement of predefined milestones, such as prototype development and chip deployment.
The DLI Scheme is being implemented in close consultation with industry stakeholders and participating companies. The government has indicated that it is open to making adjustments to the scheme in response to changing needs and ongoing feedback from beneficiaries.
