India’s semiconductor push received new momentum with the Ministry of Electronics and Information Technology (MeitY) approving funding for 23 chip-design projects under its Design Linked Incentive (DLI) Scheme. This marks a significant milestone in the ₹76,000 crore Semicon India Programme.
India’s semiconductor ambitions have gained a fresh push as the Ministry of Electronics and Information Technology (MeitY) announced financial support for 23 new chip-design projects under its Design Linked Incentive (DLI) Scheme. The move is a crucial step under the ₹76,000 crore Semicon India Programme, aimed at building a robust domestic semiconductor ecosystem and reducing reliance on imports.
Launched in December 2021, the DLI Scheme focuses on strengthening India’s chip design capabilities by supporting startups, micro, small and medium enterprises (MSMEs), and academic institutions. With an outlay of ₹1,000 crore, the scheme provides financial incentives of up to 50% of eligible project costs (capped at ₹15 crore per application) for prototype development and commercialization. Additionally, approved designs are eligible for incentives of 4–6% on net sales turnover for five years, with a maximum cap of ₹30 crore.
A key component of the initiative is to provide innovators access to advanced Electronic Design Automation (EDA) tools and intellectual property (IP) cores that are essential for chip design and early-stage prototyping. So far, 72 startups and 278 academic institutions have been given access to these resources, significantly lowering entry barriers for design-led businesses.
The 23 sanctioned projects cover a wide range of applications including surveillance cameras, energy meters, networking solutions, and microprocessor IPs. Ten of these companies have already secured venture capital funding, enabling them to take their designs closer to mass-market readiness. Six companies have achieved critical milestones by completing prototype tape-outs at leading global semiconductor foundries.
Academic participation has also seen notable progress. In a recent development, 20 chip designs created by researchers from 17 academic institutions were successfully fabricated at the Semiconductor Laboratory (SCL) in Mohali. This achievement highlights India’s growing capabilities in semiconductor research and its potential to develop a homegrown talent pipeline for the industry.
The total sanctioned outlay for projects under the DLI Scheme now stands at ₹803.08 crore, which includes the cost of EDA tools. Each project is progressing through well-defined milestones, and fund disbursements are being made based on measurable outcomes in product development and deployment.
The semiconductor industry is widely regarded as a foundation for future technologies such as 5G, artificial intelligence, electric vehicles, and high-performance computing. India’s effort to build domestic design capabilities aligns with global trends of diversifying semiconductor supply chains and reducing dependence on a few dominant markets.
By supporting indigenous chip design companies and academic research, India is taking steady steps toward becoming a competitive player in the global semiconductor value chain. With growing investor interest, supportive policy frameworks, and rising design talent, the country is well-positioned to achieve its vision of a self-reliant and innovation-driven semiconductor ecosystem.
You must be logged in to post a comment.
Stay ahead in the dynamic world of trade and commerce with India Business & Trade's weekly newsletter.