Boosting India's Semiconductor Industry with DLI Scheme

DESIGN LINKED INCENTIVE (DLI) SCHEME: A FOCUS ON SEMICONDUCTOR DESIGN

The Design Linked Incentive (DLI) Scheme, launched by the Ministry of Electronics and Information Technology (MeitY), aims to create a vibrant ecosystem for semiconductor chip design in India. The scheme is a part of the broader effort to strengthen India’s semiconductor industry, which is essential for boosting the country’s technological self-reliance and reducing dependence on imports.

Key Components of the DLI Scheme:

1. Chip Design Infrastructure Support:

Under this component, the Centre for Development of Advanced Computing (C-DAC) will set up the India Chip Centre, providing state-of-the-art infrastructure to support semiconductor design. This includes access to Electronic Design Automation (EDA) tools, Intellectual Property (IP) cores, and Multi-Project Wafer fabrication (MPW), along with post-silicon validation services.

2. Product Design Linked Incentive:

This part of the scheme offers financial incentives to domestic companies engaged in semiconductor design. Up to 50% of eligible expenditures can be reimbursed, providing crucial fiscal support to enable the growth and development of companies working on designs for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), and other semiconductor products.

3. Deployment Linked Incentive:

The DLI scheme also offers incentives for the deployment of semiconductor designs in electronic products. Companies can receive incentives of 6% to 4% of their net sales turnover over a period of five years. This is aimed at promoting the commercialization of domestic semiconductor designs, helping Indian companies bring their innovations to market.

Significance of the DLI Scheme:

The DLI Scheme is a strategic initiative to nurture India’s semiconductor design industry. It aims to support the growth of domestic companies, enhance innovation, and create a competitive semiconductor ecosystem. By offering both financial and infrastructure support, the scheme ensures that Indian companies can compete globally in the semiconductor market.

Additionally, the DLI Scheme promotes indigenization of semiconductor technologies, helping reduce dependence on foreign imports. The focus on strategic sectors, including defense, telecommunications, and electronics, will strengthen India’s national security and economic resilience.

The scheme’s long-term vision is to make India a global hub for semiconductor design, fostering innovation and supporting companies to achieve higher turnover and greater market presence.

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