India Approves 23 Chip-Design Projects To Enhance Local Semiconductor Production | Economy News
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India’s government approved 23 chip-design projects under the Design Linked Incentive scheme to boost local semiconductor production, providing financial aid for development.
Govt sanctions 23 chip design projects under DLI
As part of boosting India’s indigenous semiconductor production from designing to manufacturing, the India government has sanctioned 23 chip-design projects under the Design Linked Incentive (DLI) scheme, as informed by the Union Minister of Electronics and Information Technology Jitin Prasada in the Lok Sabha.
According to DD News report, these projects mostly spearheaded by domestic companies, startups and MSMEs will receive financial assistance to develop chip solutions for areas such as surveillance cameras, energy meters, microprocessor IPs, and networking applications.
The DLI scheme is a component of the Rs 76,000 crore ‘Semicon India Programme’, which aims to establish a comprehensive semiconductor and display manufacturing ecosystem in the country.
Since its launch in December 2021, the scheme has seen the participation of 278 academic institutions and 72 startups that now have access to advanced EDA tools, according to DD News report.
India Semiconductor Mission (ISM) has been setup as an Independent Business Division within Digital India Corporation having administrative and financial autonomy to formulate and drive India’s long term strategies for developing semiconductors and display manufacturing facilities and semiconductor design ecosystem.
Following four schemes have been introduced under the aforesaid programme:
1) Scheme for setting up of Semiconductor Fabs in India provides fiscal support to eligible applicants for setting up of Semiconductor Fabs which is aimed at attracting large investments for setting up semiconductor wafer fabrication facilities in the country.
Following fiscal support has been approved under the scheme:
28nm or Lower – Up to 50% of the Project Cost
Above 28 nm to 45nm – Up to 40% of the Project Cost
Above 45 nm to 65nm – Up to 30% of the Project Cost
2) Scheme for setting up of Display Fabs in India provides fiscal support to eligible applicants for setting up of Display Fabs which is aimed at attracting large investments for setting up TFT LCD / AMOLED based display fabrication facilities in the country. The Scheme provides fiscal support of up to 50% of Project Cost subject to a ceiling of INR 12,000 crore per Fab.
3) Scheme for setting up of Compound Semiconductors / Silicon Photonics / Sensors Fab and Semiconductor Assembly, Testing, Marking and Packaging (ATMP) / OSAT facilities in India: The Scheme provides a fiscal support of 30% of the Capital Expenditure to the eligible applicants for setting up of Compound Semiconductors / Silicon Photonics (SiPh) / Sensors (including MEMS) Fab and Semiconductor ATMP / OSAT facilities in India.
4) Design Linked Incentive (DLI) Scheme offers financial incentives, 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. The scheme provides “Product Design Linked Incentive” of up to 50% of the eligible expenditure subject to a ceiling of ₹15 Crore per application and “Deployment Linked
Incentive” of 6% to 4% of net sales turnover over 5 years subject to a ceiling of ₹30 Crore per application.
In addition to the above schemes, Government has also approved modernisation of Semi-Conductor Laboratory, Mohali as a brownfield Fab.
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst…Read More
Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst… Read More
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