Executive Summary:
The Ministry of Electronics and Information Technology addresses questions regarding the Design-Linked Incentive (DLI) Scheme, approved as part of the Semicon India Programme with a total outlay of ₹76,000 crore. The DLI Scheme, with an outlay of ₹1,000 crore, supports domestic companies, startups, and MSMEs in semiconductor design by providing design infrastructure support and financial incentives. Since its launch in December 2021, the scheme has approved access to EDA tools for academic institutions and startups, sanctioned financial support for firms and startups designing chips, and seen several companies complete prototype tapeouts.
Key Points / Main Content:
* **Semicon India Programme:**
* Total outlay of ₹76,000 crore for developing a semiconductor and display manufacturing ecosystem.
* **Design Linked Incentive (DLI) Scheme:**
* Outlay of ₹1,000 crore to support domestic semiconductor design companies, startups, and MSMEs.
* Provides design infrastructure support (EDA tools, IP cores) for early prototyping.
* Offers financial incentives:
* Up to 50% of eligible costs, capped at ₹15 crore per application, for design prototyping, scaling up, and volume production.
* Incentives of 6% to 4% of net sales turnover over five years, capped at ₹30 crore per application, for deployment and commercialization of chip solutions.
* **DLI Scheme Progress (Since December 2021):**
* 278 academic institutions (C2S) and 72 startups (DLI) approved for access to EDA tools.
* 23 firms and startups sanctioned financial support for chip design.
* 10 companies raised venture capital (VC) funding for scaling design prototypes.
* 6 companies completed prototype tapeouts at semiconductor foundries.
* 20 chip designs from 17 academic institutions successfully fabricated by SCL, Mohali.
* Total project outlay of ₹803.08 crore approved, including EDA tool costs.
* Fund release is linked to achievement of defined milestones, including chip deployment.
* **Scheme Implementation and Modification:**
* The DLI Scheme is implemented in close consultation with stakeholders and beneficiary companies.
* Modifications will be based on evolving requirements and feedback.
Impact Analysis:
* **Chip Design Firms, Startups, and MSMEs:**
* Impact: Benefit from financial incentives and infrastructure support for semiconductor design, prototyping, scaling, and commercialization.
* Action Required: Apply for the DLI Scheme, meet defined milestones for fund release, and provide feedback for scheme modifications.
* **Academic Institutions (C2S):**
* Impact: Access to state-of-the-art EDA tools for research and development in semiconductor design.
* Action Required: Utilize EDA tools for chip design, participate in prototype fabrication, and contribute to the semiconductor ecosystem.
* **Government (Ministry of Electronics and Information Technology):**
* Impact: Responsible for implementing and monitoring the Semicon India Programme and the DLI Scheme, achieving targets for semiconductor ecosystem development.
* Action Required: Continue close consultation with stakeholders, monitor progress against milestones, and make modifications to the scheme as needed.
Key Entities Referenced
Ministry of Electronics and Information Technology: The Indian government ministry responsible for electronics and information technology policy.
SHRI BAIJAYANT PANDA: Member of Lok Sabha who asked the question related to chip design firms and startups.
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 the development of a semiconductor and display manufacturing ecosystem.
Electronic Design Automation EDA tools: Software tools used for designing electronic systems such as integrated circuits and printed circuit boards.
Intellectual Property IP: Creations of the mind, such as inventions; plays a crucial role in semiconductor design.
SCL, Mohali: Semiconductor Laboratory located in Mohali, Punjab, where 20 chip designs from academic institutions were fabricated.
SHRI JITIN PRASADA: Minister of State for Electronics and Information Technology who provided the answer to the question.
GOVERNMENT OF INDIA
MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY
LOK SABHA
UNSTARRED QUESTION NO. 1666
TO BE ANSWERED ON: 30.07.2025
CHIP-DESIGN FIRMS AND STARTUPS UNDER DLI SCHEME
1666. SHRI BAIJAYANT PANDA:
Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state:
(a) the details of the number of chip-design firms and startups approved under the Design-Linked Incentive (DLI)
Scheme since December 2021 along with the total amount sanctioned and released till date;
(b) whether the number of approved projects and amount sanctioned have met the target outlay; (c) if so, whether
the Government is planning any update in target or additional outlay of funds and if not, the reasons therefor;
(d) the details of the number of implemented products or prototypes launched; and
(e) the details of Challenges faced in deployment along with the steps taken by the Government to enhance
Intellectual Property (IP) retention and commercialisation?
ANSWER
MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY
(SHRI JITIN PRASADA)
(a) to (e): 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 and startups are sanctioned financial support for designing chips for various applications such as
surveillance camera, energy meter, microprocessor IPs, networking applications, and more.
● Out of these, ten (10) companies have raised venture capital (VC) funding for scaling up their design
prototypes for commercialization.
● Six (6) companies have successfully 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.
*******