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Design Linked Incentive (DLI) Scheme for Semiconductor Design sector

Design Linked Incentive (DLI) Scheme for Semiconductor Design sector

Ministry of Electronics and Information technology has announced the Design Linked Incentive (DLI) Scheme to offset the disabilities in the domestic industry involved in semiconductor design in order to not only move up in value-chain but also strengthen the semiconductor chip design ecosystem in the country.

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.

Objectives

  • Nurturing and facilitating the growth of the domestic companies, startups and MSMEs.
  • Achieving significant indigenization in semiconductor content and IPs involved in the electronic products deployed in the country, thereby facilitating import substitution and value addition in electronics sector.
  • Strengthening and facilitating access to semiconductor design infrastructure for the startups and MSMEs.

Scheme duration

The scheme shall be initially be for three (3) years from 01-01-2022.

Target Segments

Semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design.

Benefits

The scheme has three components – Chip Design infrastructure support, Product Design Linked Incentive and Deployment Linked Incentive.

  • Under the Chip Design infrastructure support, C-DAC will setup 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.
  • Financial Incentives
    • Product Design Linked Incentive - Reimbursement of up to 50% of the eligible expenditure subject to a ceiling of ₹15 Crore per application will be provided to the approved applicants who are engaged in semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design. The applicants should submit their proposals for development of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design that can be demonstrated in an operational environment and are ready for volume production.
    • Deployment Linked Incentive - 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. 
  • Design Infrastructure support
    • National EDA Tool Grid: Remote access to the centralized facility of EDA tools for chip design activities will be provided to start-ups and MSMEs.
    • IP Core repository: Flexible access to the repository of IP Cores for SoC design activities.
    • MPW Prototyping support: Fiscal support for fabricating the design in MPW manner at semiconductor foundries.
    • Post-silicon validation support: Fiscal support for testing and validation of the fabricated ASIC and silicon bring-up activities.

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.

Eligibility

  • Financial incentives and design infrastructure support will be extended to domestic companies, Startups and MSMEs engaged in semiconductor design or semiconductor linked design.
  • The approved applicants that claim incentives under the scheme shall 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.
  • An applicant must meet the Threshold and Ceiling Limit to be eligible for disbursement of incentive. 

How to apply

For online application, visit www.chips-dli.gov.in .

Online applications can be submitted from January 1, 2022 to December 31, 2024.

To access the complete guidelines, click here.

Source : DLI Scheme portal



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