The Government of India has strengthened its focus on building a domestic semiconductor design ecosystem through the Design Linked Incentive (DLI) Scheme, a key pillar of the country’s long-term semiconductor mission.

Chip design is the most valuable and technology-intensive stage of the semiconductor supply chain. To ensure that Indian companies and startups play a meaningful role in this space, the DLI Scheme provides targeted financial support and shared design infrastructure to organisations working on indigenous semiconductor technologies.

Through the scheme, startups, MSMEs and design firms receive assistance at different stages of product development — from early design and validation to prototype development and commercial readiness. The programme also provides access to advanced national design facilities that reduce the high entry barriers typically associated with chip development.

Over the last few years, the scheme has supported multiple chip design projects covering areas such as communications, defence electronics, smart devices, energy systems and digital infrastructure. Indian startups working under the programme have progressed from concept design to successful silicon fabrication, marking a critical step in building domestic technology ownership.

Officials said the scheme has helped create specialised engineering jobs, encouraged patent creation and strengthened India’s intellectual property base in semiconductor technologies. It has also enabled the development of reusable semiconductor building blocks that can be used across future chip designs.

A senior official associated with the programme said the goal is to move Indian innovation closer to commercial manufacturing and global deployment, reducing long-term dependence on imported chip technologies.

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With continued support under the Semicon India programme, the government expects the DLI Scheme to play a central role in positioning India as a credible global hub for semiconductor design, innovation and advanced electronics development.

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