The Center invites applications from domestic chip design companies. Details

The Center has invited applications from domestic companies, start-ups and MSMEs under its Design Linked Incentives (DLI) program to create a vibrant ecosystem for semiconductor chip design in the country.

Under the DLI program, financial incentives and design infrastructure support will be extended to domestic companies, start-ups and MSMEs at different stages of development and deployment of semiconductor design for integrated circuits (ICs) , chipsets, system-on-chips (SoC), core systems and IPs and semiconductor-related design for more than 5 years.

The scheme, which was part of The 76,000 crore ($10 billion) package announced by the government in December aims to support at least 20 domestic companies involved in semiconductor design and help them achieve a turnover of more than 1500 Crore over the next 5 years, the Ministry of Electronics and Computing said in a statement.

According to the statement, C-DAC (Center for the Development of Advanced Computing), a scientific society operating under MeitY, will serve as the nodal agency for the implementation of the DLI program.

The program has three components: chip design infrastructure support, a product design incentive and a deployment incentive.

As part of the chip design infrastructure support, C-DAC will set up the India Chip Center to house the state-of-the-art design infrastructure and facilitate its access to supported companies.

Under the design-related incentive component, reimbursement of up to 50% of eligible expenditure subject to a cap of 15 crores per application will be provided as tax support to approved applicants who are engaged in semiconductor design.

Under the deployment component, an incentive of 6% to 4% of net sales over 5 years capped at 30 Crore per application will be provided to approved applicants whose semiconductor design for integrated circuits (ICs), chipsets, system on chips (SoCs), IP systems and cores and semiconductor related design are deployed in electronic products.

Approved applicants applying for incentives under the scheme will be encouraged to maintain their national status (i.e. more than 50% of the equity thereof is beneficially owned by resident Indian citizens and/or to Indian companies, which are ultimately owned and controlled by resident Indian citizens) for a period of three years after applying for incentives under the scheme.

A dedicated portal has been made available – www.chips-dli.gov.in – to invite online applications from January 1, 2022 to December 31, 2024. Applicants can find the DLI program guidelines on the portal and register for receiving aid under the scheme.

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