#SemiconIndia #DLIScheme #ChipDesign #StartupIndia #EDAtools #MakeInIndia #DigitalIndia #ElectronicsDesign #MSMEInnovation #AtmaNirbharBharat #VLSIDesign
New Delhi: In a significant stride toward building a self-reliant semiconductor ecosystem, the Government of India has accelerated its support for domestic semiconductor design through the Design Linked Incentive (DLI) Scheme, part of the broader Semicon India Programme. Under this initiative, 23 chip-design projects have been sanctioned for financial assistance, aimed at supporting domestic companies, startups, and MSMEs working in semiconductor design.
Union Minister of Electronics and IT, Shri Jitin Prasada, presented the progress update in the Lok Sabha, highlighting a rapidly maturing chip design ecosystem in India that now includes active participation from academic institutions, startups, and private enterprises.
A Strategic Push Toward Chip Self-Sufficiency
India’s strategic vision to become a hub for semiconductor innovation received a major boost with the approval of the ₹76,000 crore Semicon India Programme, out of which ₹1,000 crore is earmarked specifically for the DLI Scheme.
The DLI Scheme aims to lower the high entry barriers traditionally associated with chip design — such as the high cost of infrastructure, long development cycles, and global competition. It does this by providing:
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Access to advanced design infrastructure, including Electronic Design Automation (EDA) tools and IP cores to support early-stage prototyping
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Financial incentives up to 50% of eligible costs (capped at ₹15 crore per application) for design development and scaling
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Deployment-linked commercialization support, with 6% to 4% of net sales turnover over five years, capped at ₹30 crore per application
Widespread Adoption Across Academia and Startups
Since the launch of the DLI Scheme in December 2021, an impressive 278 academic institutions and 72 startups have gained access to state-of-the-art EDA tools—a foundational element for chip prototyping and validation.
In an important milestone, 20 chip designs from 17 academic institutions have already been successfully fabricated by the Semiconductor Laboratory (SCL), Mohali, underscoring the impact of the scheme in bridging the gap between academia and industry.
Real-World Commercialization Taking Shape
Among the 23 sanctioned projects, several are already transitioning from design to market. The chip solutions being designed cover surveillance cameras, energy meters, networking, and microprocessor IPs, among other use cases.
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10 companies supported under the DLI Scheme have already raised venture capital funding to scale up their chip prototypes.
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6 companies have successfully completed prototype tape-outs at various global semiconductor foundries, marking significant progress toward mass production.
These achievements show that India’s semiconductor startups are beginning to attract serious investor interest, which will be critical for commercial success in this high-stakes, high-investment sector.
Financial Outlay and Monitoring
A total project outlay of ₹803.08 crore has been committed under the DLI Scheme so far, including the cost of EDA tools. The government has adopted a milestone-linked funding release model to ensure transparency and performance-based disbursement. These milestones include:
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Completion of prototype tape-outs
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Functional testing of silicon
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Demonstration of commercial interest or sales
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Deployment of chips in end-use applications
This rigorous monitoring ensures that funds are used efficiently and encourages companies to remain focused on delivering results.
Collaborative Implementation and Flexibility
One of the notable features of the DLI Scheme is its consultative and adaptive approach. The Ministry of Electronics and Information Technology (MeitY) works in close coordination with beneficiary companies, industry stakeholders, and academic institutions to fine-tune the scheme based on real-time challenges and market needs.
Future modifications and policy adjustments will be introduced to align with the evolving needs of the sector, ensuring that the scheme remains relevant and effective.
A Game-Changer for India’s Semiconductor Ambitions
With global chip supply chains facing disruption and nations rushing to build domestic capabilities, India’s focused effort in chip design through the DLI Scheme comes at an opportune time. By investing in design talent and infrastructure, India is laying the groundwork for a robust semiconductor ecosystem that spans research, design, fabrication, and deployment.
While India is still in the early stages of developing large-scale chip manufacturing capacity, the emphasis on design offers a competitive entry point where the country can leverage its strong engineering and software base.
The current momentum in prototype development, academic involvement, and startup participation highlights a growing confidence in India’s ability to play a meaningful role in the global semiconductor value chain.
Conclusion
The DLI Scheme has emerged as a vital enabler in India’s semiconductor journey. By providing targeted support to startups, MSMEs, and educational institutions, it is helping democratize access to semiconductor innovation. As more designs move toward commercialization, and as collaboration between government, academia, and industry deepens, India’s dream of becoming a global semiconductor powerhouse seems closer to reality.
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