Applications are invited under the Design Linked Incentive (DLI) Scheme from domestic semiconductor

Last Updated17/01/2022

With an overall vision to create a vibrant ecosystem for Semiconductor Chip Design in the country, the Ministry of Electronics and Information (MeitY) is seeking applications from 100 domestic companies, start-ups, and MSMEs under its Design Linked Incentive (DLI) Scheme.
C-DAC (Centre for Development of Advanced Computing), a scientific society operating under MeitY, will serve as the nodal agency for the implementation of the DLI scheme.

Design linked incentive Scheme was announced by MeitY in 2021, financial incentives and design infrastructure support will be extended to domestic companies, startups,MSMEs across various stages of development and deployment of semiconductor design for Integrated Circuits Cores and semiconductor linked design for over a period of 5 years.
C-DAC (Centre for Development of Advanced Computing), a scientific society operating under MeitY, will serve as the nodal agency for the implementation of the DLI scheme.

It has three components - Chip Design infrastructure support, Product Design Linked Incentive and Deployment Linked Incentive.
Under the Chip Design infrastructure support, C-DAC will set up the India Chip Centre to host the state-of-the-art design infrastructure (viz. EDA Tools, IP Cores, and support for MPW (Multi Project Wafer fabrication) & 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 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, an incentive of 6% to 4% of net sales turnover over 5 years subject to a ceiling of 30 Crore per application will be provided to approved applicants whose semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & 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 indigenization & deployment thereby taking steps towards the import substitution & value addition in strategic & societal sectors.

It will leverage India's strength to make an impact in the field of the design of semiconductors.
The semiconductor design is the main driver of revenues that electronic chip companies earn from the sale of their high-end components

Semiconductors are materials that have a conductivity between conductors and insulators. They can be pure elements, silicon or germanium or compounds; gallium, arsenide, or cadmium selenide.

They are the basic building blocks that serve as the heart and brain of all modern electronics and information and communications technology products.
These chips are now an integral part of contemporary automobiles, household gadgets, and essential medical devices such as ECG machines.