Design Linked Incentive (DLI) Scheme

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    • Recently, the Ministry of Electronics and Information (MeitY) started seeking applications from 100 domestic companies, start-ups and MSMEs under its Design Linked Incentive (DLI) Scheme.

    About Design Linked Incentive (DLI) Scheme.

    • It was announced in December 2021 by MeitY.
    • Under this, 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 5 years.
    • Aims: To create a vibrant ecosystem for Semiconductor Chip Design in the country.
    • To promote the domestic manufacturing of semiconductors and allied devices. 
    • The scheme is expected to provide a globally competitive incentive package to companies in semiconductors and display manufacturing as well as design.
    • Implementation: C-DAC (Centre for Development of Advanced Computing), a scientific society operating under MeitY, will serve as the nodal agency for the implementation of the DLI scheme.
    • Components: It has three components which are 
      • Chip Design infrastructure support:
        • Under it, C-DAC will set up the India Chip Centre to host the state-of-the-art design infrastructure (viz. EDA Tools, IP Cores and support for MPW (Multi Project Wafer fabrication) & post-silicon validation) and facilitate its access to supported companies.
    • The Product Design Linked Incentive: 
      • Under it, reimbursement of up to 50% of the eligible expenditure subject to a ceiling of ?15 Crore per application will be provided as fiscal support to the approved applicants who are engaged in semiconductor design.
    • The Deployment Linked Incentive: 
      • Under it, an incentive of 6% to 4% of net sales turnover over 5 years subject to a ceiling of ?30 Crore per application will be provided to approved applicants whose semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design are deployed in electronic products.

    Source: PIB