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Design-linked Incentive (DLI) Scheme

Design-linked Incentive (DLI) Scheme

India has reached a significant milestone in semiconductor self-reliance with the launch of the ‘NETRA A2000’, an indigenous 12nm Edge AI system-on-chip (SoC) developed by the startup Netrasemi. Supported by the Design-linked Incentive (DLI) scheme, this development highlights India’s transition toward advanced semiconductor design and domestic Intellectual Property (IP) creation.

The DLI Scheme and Semiconductor Design

The DLI scheme, a core component of the India Semiconductor Mission (ISM), provides financial and infrastructure support to domestic companies, startups, and MSMEs.

  • Core Incentives: Offers financial assistance for design expenditure and deployment-linked incentives based on net sales for five years.
  • Eligibility: Restricted to domestic entities where at least 50% of the design work occurs in India, with the applicant holding the required IP rights.
  • Strategic Goal: To move India beyond assembly, testing, and packaging (ATP) toward high-value semiconductor design, reducing dependence on foreign suppliers for critical technologies.

IASPOINT Booster Facts

  • Nodal Authority: Implemented under the ISM, which functions as a division within the Digital India Corporation (MeitY).
  • Edge AI: The ‘NETRA A2000’ processes data locally (Edge computing), reducing latency and enhancing privacy.
  • Process Node: The 12nm technology refers to the process node; lower nanometer values indicate higher transistor density and improved energy efficiency.
  • Infrastructure Support: MeitY facilitates access to Electronic Design Automation (EDA) tools through the Centre for Development of Advanced Computing (C-DAC).
  • Market Goal: Aims to convert India’s existing global design talent pool into domestic ownership of semiconductor IP.
Last Modified: June 16, 2026

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