Indian government approves 23 new chip-design projects

The central government has approved 23 new chip-design projects under the ‘Design Linked Incentive (DLI) Scheme’. According to information given by Electronics and IT Minister Jitin Prasada in the Lok Sabha, these projects are being implemented by domestic companies, startups and MSMEs.

The DLI scheme is an important part of the government’s ₹76,000 crore ‘Semicon India Program’, which aims to develop a comprehensive ecosystem of semiconductor and display manufacturing in the country. Under this scheme, ₹1,000 crore has been specifically set aside for chip design support.

As per the provisions of the scheme, companies can get reimbursement of up to 50% of the project cost, up to a maximum of ₹15 crore per application. Also, incentives are given for commercial use of 4-6% of net sales turnover for the next five years, up to a maximum of ₹30 crore per application.

Launched in December 2021, the scheme has so far seen participation of 278 academic institutions and 72 startups. 20 chip designs from 17 institutions have been successfully fabricated at the semiconductor laboratory in Mohali. Additionally, 6 companies have completed tape-out of their prototypes at global semiconductor manufacturing centres and 10 startups have received venture capital funding for commercial expansion.

A total of ₹803.08 crore worth of projects have been approved so far under the DLI scheme. The government is implementing the scheme in consultation with industry experts and is looking forward to making necessary changes to make it more effective based on the feedback.