Date: 2025-07-30Category: Not ApplicableState: Union GovernmentCountry: India
23 Chip-Design Projects Sanctioned for Financial Support under Design Linked Incentive(DLI) Scheme to support domestic companies, startups, and MSMEs in semiconductor design
The Ministry of Electronics and Information Technology (MeitY) is implementing the Design Linked Incentive (DLI) Scheme as part of the Semicon India Programme, which has a total outlay of ₹76,000 crore to develop a semiconductor and display manufacturing ecosystem in India. The DLI scheme, with an outlay of ₹1,000 crore, aims to support domestic companies, startups, and MSMEs in semiconductor design by addressing high entry barriers and long development timelines.
The DLI Scheme provides design infrastructure support, including access to Electronic Design Automation (EDA) tools and Intellectual Property (IP) cores, and financial incentives. These incentives include up to 50% of eligible costs, capped at ₹15 crore per application, for design prototyping, scaling up, and volume production, as well as incentives of 6-4% of net sales turnover over five years, capped at ₹30 crore per application, for deployment and commercialization of chip solutions.
Since its launch in December 2021, the DLI Scheme has approved 278 academic institutions and 72 startups for access to EDA tools. Twenty-three firms/startups have been sanctioned financial support for designing chips for various applications, including surveillance cameras, energy meters, microprocessor IPs, and networking applications. Ten of these companies have raised venture capital (VC) funding to scale up their design prototypes for commercialization, and six have completed prototype tapeouts at 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. The release of funds is linked to the achievement of defined milestones, including chip deployment. The DLI Scheme is implemented in consultation with stakeholders, and modifications will be made based on evolving requirements and feedback.
This information was submitted by Union Minister of Electronics and Information Technology Shri Jitin Prasada in Lok Sabha.
Key Entities Referenced
Ministry of Electronics and Information Technology: The Indian government ministry responsible for electronics and information technology policy.
Design Linked Incentive (DLI) Scheme: A scheme to support domestic companies, startups, and MSMEs in semiconductor design.
Semicon India Programme: A Government of India program with an outlay of ₹76,000 crore for semiconductor and display manufacturing ecosystem development.
Electronic Design Automation (EDA): Tools used in the design and verification of integrated circuits.
SCL, Mohali, Punjab: Semiconductor Laboratory located in Mohali, Punjab, involved in the fabrication of chip designs.
Lok Sabha: The lower house of the Parliament of India, where information about the DLI Scheme was submitted.
Shri Jitin Prasada: Union Minister of Electronics and Information Technology.
MSMEs: Micro, Small & Medium Enterprises
Ministry of Electronics & IT
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
Posted On: 30 JUL 2025 9:08PM by PIB Delhi
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
(cid:108)
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
(cid:108)
prototyping, scaling-up, and volume production
Incentives of 6% to 4% of net sales turnover over five years, capped at ₹30 cr/application, for
(cid:108)
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-
(cid:108)
the-art Electronic Design Automation (EDA) tools
23 firms & startups are sanctioned financial support for designing chips for surveillance camera,
(cid:108)energy meter, microprocessor IPs, networking applications etc.
Out of these, ten (10) companies have raised venture capital (VC) funding for scaling up their
(cid:108)
design prototypes for commercialization
Six (6) companies have completed prototype tape-outs at various semiconductor foundries
(cid:108)
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 Shri Jitin
Prasada in Lok Sabha today.
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Dharmendra Tewari /Navin Sreejith
(Release ID: 2150464)