India pushes semiconductor design innovation with DLI scheme

India pushes semiconductor design innovation with DLI scheme

India is stepping up its efforts to become a global leader in semiconductor design and manufacturing, with a particular focus on fostering innovation through the Design Linked Incentives (DLI) scheme. The DLI scheme, part of the broader Semicon India program, aims to encourage startups and entrepreneurs to innovate and design semiconductor chips, ultimately reducing India's dependence on imported chips.

Minister Ashwini Vaishnaw, in a recent social media post, highlighted the progress made in chip manufacturing and the importance of homegrown chipsets in India's technological journey. He emphasized that chips with Indian intellectual property (IP) are crucial for the country's technological advancement [1]. The minister cited Mindgrove Technologies, an IIT-M incubated startup, as an example of successful innovation supported by the DLI scheme. Mindgrove has designed secure IoT chips intended for use in CCTV cameras, industrial applications, and other IoT products [1].

The DLI scheme provides significant fiscal support to startups and MSMEs involved in semiconductor design. As of now, 72 design companies have been approved for semiconductor chip design infrastructure support, with 23 companies also approved for P-DLI to develop semiconductor chips for various applications [2]. These companies are not only serving the Indian market but also exporting their products to international markets, contributing to India's semiconductor ecosystem.

India's semiconductor sector is poised for a significant leap, with the first 'Made in India' chips expected by late 2025. The government's Semicon India program, with a total outlay of Rs 76,000 crore, supports this goal. The program has approved 10 manufacturing projects across six states, potentially creating 29,000 jobs [2]. These projects are expected to start commercial production within 1-5 years, further strengthening India's semiconductor ecosystem.

The government's efforts to foster innovation in semiconductor design are part of a broader strategy to build a precise and cohesive AI ecosystem. The IndiaAI Mission, approved in March 2024, includes 7 pillars focused on AI innovation, strategic programs, and partnerships [2]. India is also set to host the upcoming Artificial Intelligence Impact Summit in February 2026, highlighting the country's commitment to emerging technologies.

In conclusion, India's push to become a product nation is evident in its semiconductor design innovation efforts. The DLI scheme, along with other government initiatives, is playing a crucial role in nurturing a robust semiconductor ecosystem. As these initiatives gain momentum, India is set to become a significant player in the global semiconductor market.

References:
[1] https://timesofindia.indiatimes.com/business/india-business/bharat-steps-up-efforts-to-be-product-nation-ashwini-vaishnaw-lauds-indias-semiconductor-push-encourages-startups-in-chip-design/articleshow/123362275.cms
[2] https://m.economictimes.com/tech/technology/first-made-in-india-semiconductor-chip-likely-by-december-mos-jitin-prasada/articleshow/123407856.cms