Modi: India govt working on new design-linked incentive program

Modi: India govt working on new design-linked incentive program

Prime Minister Narendra Modi is set to inaugurate the second Semicon India event on September 2, 2025, marking a significant milestone in India's semiconductor mission. The three-day event will feature high-profile industry leaders and is expected to see twice the participation of the inaugural event, according to IT Ministry secretary S Krishnan [1].

The event will highlight India's progress in building a comprehensive semiconductor ecosystem over the past four years. The Rs 76,000-crore India Semiconductor Mission (ISM), launched in December 2021, has nearly exhausted its funds. The mission has approved the construction of one chip fabrication unit, one compound chip fabrication unit, and eight Outsourced Semiconductor Assembly and Testing (OSAT) as well as Assembly, Testing, Marking and Packaging (ATMP) units [1].

In the second phase of the ISM, the government is expected to continue its policy of not supporting technology pacts between Indian and foreign companies. However, support may be provided to micro, small, and medium enterprises (MSMEs) to supply raw materials to global semiconductor firms. The government is also considering changes to the existing Design Linked Incentive (DLI) scheme, consulting experts to recast the program [1].

The government aims to ensure that India remains competitive in semiconductor design. The new DLI scheme is expected to be more liberal in its approach to selected companies, the way funds are released, and the amount of money provided as grants. The primary goal is to ensure access to scale and the best possible products in the world [1].

The Semicon India event will also see agreements signed between companies and countries, further cementing India's role in the global semiconductor industry.

References:
[1] https://www.business-standard.com/technology/tech-news/pm-modi-to-inaugurate-second-semicon-india-event-on-september-2-125090101406_1.html