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India Approves 23 DLI Chip-Design Projects, Experts Push to Raise Subsidy

Analysts argue the scheme should extend benefits to corporate MSMEs to cover actual chip design costs

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Overview

  • The government sanctioned 23 chip-design projects under the Design-linked Incentive scheme to back solutions for surveillance cameras, energy meters, microprocessor IPs and networking applications.
  • The DLI scheme reimburses 50% of eligible design expenditures up to ₹15 crore per application and provides a 4–6% deployment-linked incentive capped at ₹30 crore.
  • Experts warn that ₹15 crore falls short of the ₹50 crore-plus cost for basic consumer-electronics chip designs, prompting the government to consider doubling the subsidy to ₹30 crore.
  • Industry leaders propose opening the scheme to corporate MSMEs and easing the requirement to cover 50% of project costs upfront.
  • EPIC Foundation signed an MoU with Germany’s Fraunhofer Group to strengthen joint R&D efforts in microelectronics.