Semicon India Programme and Design Linked Incentive (DLI) Scheme

·         23 Chip-Design Projects Sanctioned for Financial Support under Design Linked Incentive (DLI) Scheme to support domestic companies, startups, and MSMEs in semiconductor design

·         278 Academic Institutions and 72 Startups Access Advanced Electronics Design Automation(EDA) Tools under DLI

·         20 chip designs from 17 academic institutions are successfully fabricated by SCL, Mohali

·         DLI Scheme Addresses High Entry Barriers and Long Timelines in Semiconductor Product Design and Commercialization

Semicon India Programme – Key Highlights

Total Outlay: ₹76,000 crore

·         Aimed at building a semiconductor and display manufacturing ecosystem in India.

Design Linked Incentive (DLI) Scheme

Purpose:

To support domestic companies, startups, and MSMEs in semiconductor design and commercialization, overcoming:

·         High entry barriers,

·         Long development cycles,

·         Global competition.

Outlay: ₹1,000 crore

Key Incentives Provided:

1.    Design Infrastructure Support

o    Access to EDA tools and IP cores for early-stage prototyping.

2.    Financial Incentive

o    Up to 50% of eligible design costs (capped at ₹15 crore per application).

3.    Commercialization Incentive

o    6% to 4% of net sales turnover for 5 years, capped at ₹30 crore per application.

Progress Since Launch (Dec 2021):

Category

Details

Academic Institutions

278 approved under Chip to Startup (C2S) program

Startups

72 approved for access to EDA tools

Financial Support Sanctioned

23 firms/startups for chip designs (e.g., surveillance, energy, networking)

VC Funded Firms

10 companies raised funding for commercialization

Prototype Tape-outs

6 companies completed at foundries

Fabricated Designs

20 chip designs from 17 academic institutions fabricated at SCL, Mohali

Total Approved Projects

₹803.08 crore including EDA infrastructure

Implementation:

·         Milestone-based funding disbursal

·         Projects at different stages of chip design and development

·         Implemented with active industry consultation; open to future modifications based on feedback

 

[ABS News Service/31.07.2025]

The Government has approved the ‘Semicon India Programme’ with a total outlay of ₹76,000 crore for the development of a semiconductor and display manufacturing ecosystem in the country.

As part of this, the ‘Design Linked Incentive (DLI) Scheme’ has been approved with an outlay of ₹1,000 crore to support domestic companies, startups, and MSMEs in semiconductor design.

Designing and commercializing a semiconductor product involves high entry barriers, long development timelines, and global competition. To address these challenges, the DLI Scheme provides for the following:

·         Design infrastructure support, such as Electronic Design Automation (EDA) tools and Intellectual Property (IP) cores, to help with early prototyping of designs

·         Financial incentive of up to 50% of eligible costs, capped at ₹15 cr/application, for design prototyping, scaling-up, and volume production

·         Incentives of 6% to 4% of net sales turnover over five years, capped at ₹30 cr/application, for deployment & commercialization of chip solutions

Under DLI, since its launch in December 2021:

·         278 academic institutions (C2S) and 72 startups (DLI) have been approved for access to state-of-the-art Electronic Design Automation (EDA) tools

·         23 firms & startups are sanctioned financial support for designing chips for surveillance camera, energy meter, microprocessor IPs, networking applications etc.

·         Out of these, ten (10) companies have raised venture capital (VC) funding for scaling up their design prototypes for commercialization

·         Six (6) companies have completed prototype tape-outs at various semiconductor foundries

Recently, 20 chip designs from 17 academic institutions have been successfully fabricated by SCL, Mohali.

A total project outlay of ₹803.08 crore, including the cost of EDA tools, has been approved under the DLI Scheme. These projects are at various stages of semiconductor design and development. The release of funds under the scheme are linked with the achievement of defined milestones, including the deployment of chips.

The DLI Scheme is implemented in close consultation with stakeholders and beneficiary companies. Any modifications needed will be done based on evolving requirements and feedback.

This information was submitted by Union Minister of Electronics and Information Technology Jitin Prasada in Lok Sabha 30 July, 2025.