The Ministry of Electronics and Information on 21st December 2021 has notified the Design Linked Incentive (DLI) Scheme which offers financial incentives as well as design infrastructure support 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 over a period of 5 years.
The Main objective of the scheme is to strengthen the design infrastructure through incubators for semiconductor design and facilitating access to startups and MSMEs and achive significant indigenization in semiconductor and electronic products and IPs deployed in the country, thereby facilitating import substitution and value addition in electronics sector in the next 5 years.
Financial incentives and design infrastructure support will be extended to domestic companies, startups and MSMEs engaged in semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design under the DLI Scheme.
The Applications under the Scheme will be initially open for three (3) years from 01.01.2022. The applications received under the Scheme will be appraised on an ongoing basis and implementation will continue as per the approvals accorded under the Scheme.
Mid-term appraisal of the scheme will be done after two years of its implementation or as per recommendations of C-DAC to assess the impact of the scheme, offtake by the applicants and economy in terms of the stated objectives. Based on such impact assessment, decision will be taken to increase the tenure of the scheme and change its financial outlay with the approval of the Minister of Electronics and Information Technology.
