In news- Recently, the Ministry of Electronics and Information (MeitY) has invited applications from 100 domestic companies, start-ups and MSMEs under its Design Linked Incentive (DLI) Scheme.
About DLI scheme for Semiconductor Chip Design-
- Under this scheme, financial incentives and design infrastructure support will be extended to domestic companies, startups and MSMEs across various stages of development and deployment of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design for over a period of 5 years.
- The scheme is a part of Rs.76,000 crore ($10 billion) package that the government announced in December 2021.
- It aims to nurture at least 20 domestic companies involved in semiconductor design and facilitate them to achieve turnover of more than Rs. 1500 Crore in the next 5 years.
- C-DAC (Centre for Development of Advanced Computing), a scientific society operating under MeitY, will serve as the nodal agency for implementation of the DLI scheme.
- The approved applicants that claim incentives under the scheme will be encouraged to retain their domestic status (i.e., more than 50% of the capital in it is beneficially owned by resident Indian citizens and/ or Indian companies, which are ultimately owned and controlled by resident Indian citizens) for a period of three years after claiming incentives under the scheme.
- The DLI Scheme will also take a graded and pre-emptive approach to identify the Products of national priorities and implement strategies for their complete or near complete indigenisation & deployment thereby taking steps towards the import substitution & value addition in strategic & societal sectors.
Three Components of the scheme-
- Under the Chip Design infrastructure support, C-DAC will set up the India Chip Centre to host the state-of-the-art design infrastructure and facilitate its access to supported companies.
- Under the Product Design Linked Incentive component, a reimbursement of up to 50% of the eligible expenditure subject to a ceiling of Rs.15 Crore per application will be provided as fiscal support to the approved applicants.
- Under the Deployment Linked Incentive component, an incentive of 6% to 4% of net sales turnover over 5 years subject to a ceiling of Rs.30 Crore per application will be provided to approved applicants whose semiconductor design for ICs, Chipsets, SoCs, Systems & IP Cores and semiconductor linked design are deployed in electronic products.