India’s semiconductor strategy is increasingly focused on chip design, not only fabrication. The Design Linked Incentive (DLI) Scheme, under the Semicon India Programme, is being used to build a domestic fabless ecosystem, strengthen intellectual property creation, and reduce dependence on imported chip technologies. The scheme is aimed at startups, MSMEs, and domestic companies working on semiconductor design and deployment.
What the DLI Scheme Covers
The DLI Scheme supports the full semiconductor design lifecycle, from concept to deployment. It covers integrated circuits, chipsets, systems-on-chip, systems, and IP cores. Startups and MSMEs can receive financial incentives and access to design infrastructure. Domestic companies are eligible for incentives linked to deployment of semiconductor designs in electronic products.
Financial Support and Eligibility
- Product design support offers reimbursement of up to 50% of eligible expenditure, capped at ₹15 crore per application.
- Deployment-linked incentive provides 6% to 4% of net sales turnover for five years, capped at ₹30 crore per application.
- For deployment support, minimum cumulative net sales over five years must be ₹1 crore for startups and MSMEs, and ₹5 crore for other domestic companies.
- Eligible entities must meet definitions prescribed for startups, MSMEs, and domestic companies under relevant government norms.
Design Infrastructure and National Support
The ChipIN Centre, established by C-DAC, provides shared design infrastructure under the scheme. It includes a national EDA tool grid, an IP core repository, MPW prototyping support, and post-silicon validation support. This lowers entry barriers for early-stage innovators and expands access to advanced chip design tools across the country.
Impact on India’s Semiconductor Ecosystem
Since its launch in December 2021, the scheme has supported chip-design projects across surveillance, energy meters, microprocessors, satellite communication, broadband, and IoT SoCs. It has also helped build a wider talent base through academic and startup participation. Reported outcomes include patent filings, chip tape-outs, fabricated chips, reusable IP cores, and trained engineers. The scheme is helping India move from design validation to productisation and market deployment.
Last Modified: April 25, 2026