Govt Receives Over 28 Applications For DLI Scheme For Semiconductors: Rajeev Chandrasekhar

The Design Linked Incentive (DLI) Scheme for semiconductors has received a warm response, with the government receiving over 28 proposals from companies, including startups, Minister of State for Electronics and IT Rajeev Chandrasekhar said. 

The government plans to expand the DLI scheme to include even foreign semiconductor companies so that they can partner with Indian startups to design in India, Chandrasekhar said while interacting with media on the sidelines of an event. 

“This will enable our Indian startups to grow rapidly and scale and start creating more value that some of the major global fabless semiconductor companies are adding,” he added. 

The DLI scheme aims to offer financial incentives as well as design infrastructure support across various stages of development and deployment of semiconductor designs for integrated circuits (ICs), chipsets, system on chips (SoCs), systems & IP cores and semiconductor-linked designs over a period of 5 years.

The government has earmarked $200 Mn for the DLI scheme. 

“We are encouraging more and more Indian startups to apply for futureDESIGN DLI,” the minister added

The futureDESIGN scheme under the India Semiconductor Mission is aimed at stimulating the next-gen semiconductor designers, promoting the culture of co-development and joint ownership of IPs with active industry participation and indigenously developing semiconductor chips for automobile, mobility, communication and computing. 

Chandrasekhar said the government has received multiple proposals on AI chips, adding that the Centre is more focused on working on real world AI use cases.

The statements came a day before the groundbreaking ceremony of the US-based Micron Technology’s $2.75 Bn ATMP (assembly, testing, marking, and packaging) facility in Gujarat on Saturday (September 22, 2023).

“This is an important piece of the whole semiconductor ecosystem that is being built out and this facility will represent a very important part of that semiconductor vision that was led by Prime Minister Narendra Modi in December 2021,” Chandrasekhar said. 

Earlier in July, Micron president and CEO Sanjay Mehrotra said that its facility in Sanand will create 5,000 direct jobs and 15,000 indirect jobs over the next few years. 

Besides this, it must be noted that the US-based chip equipment manufacturer Lam Research plans to train 60,000 Indian engineers through its Semiverse Solution to upskill them with semiconductor knowledge, while Applied Materials plans to invest $400 Mn to establish a collaborative engineering centre in India.

India’s Bet On Semiconductor Manufacturing

The developments are a result of the Indian government’s increasing focus on developing a semiconductor manufacturing ecosystem in the country. 

As part of this, the government has launched a number of production linked incentive schemes to attract companies and produce semiconductors locally. Besides DLI, the Centre has also launched production linked incentive schemes for semiconductor fabs, display fabs and compound semiconductors under the India Semiconductor Mission.

Along with startups, a number of corporations and global companies have made a beeline to set up semiconductor plants in the country under the PLI schemes.

Earlier this month, Taiwanese contract manufacturer Foxconn, which currently manufactures Apple’s iPhones in India, partnered French-Italian semiconductor company STMicroelectronics to set up a semiconductor plant in the country. 

Mukesh Ambani’s Reliance Industries is also exploring plans to venture into the semiconductor manufacturing space. 

In an exclusive interview with Inc42 earlier this year, Chandreskhar said India will have at least 50 startups focused on semiconductors by the end of 2023.