Design Linked Incentive (DLI) Scheme

Source:  IE

 Context: India’s first indigenously designed 3GPP compliant modem system-on-chip (SoC), developed by WiSig Networks under the government’s Design Linked Incentive (DLI) scheme, faces production challenges despite significant funding.

About Design Linked Incentive (DLI) Scheme:

  • Objective: Supports the growth of domestic companies, startups, and MSMEs in semiconductor design, fostering import substitution and value addition in the electronics sector.
  • Scope: Provides financial incentives and infrastructure for semiconductor design, including Integrated Circuits (ICs), chipsets, System on Chips (SoCs), IP cores, and other linked designs, over five years.
  • Components:
    • Chip Design Infrastructure Support: C-DAC will establish the India Chip Centre for advanced design tools, IP cores, MPW fabrication, and post-silicon validation.
    • Product Design Incentive: Reimbursement of up to 50% of eligible costs, capped at ₹15 crore per application.
    • Deployment Linked Incentive: Incentive of 4%-6% on net sales turnover over five years, capped at ₹30 crore per application.
  • Duration: Initially planned for three years from January 1, 2022, with possible extensions.
  • Nodal Agency: Centre for Development of Advanced Computing (C-DAC).

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