Govt plans to allocate US$ 10 million to develop homegrown electronic chip ecosystem under PLI

The development falls as a Design-Linked Incentive (DLI) program that will support 100 companies involved in the product design in the semiconductor space

May 2, 2022

Under the scheme, 85,000 semiconductor engineers across different departments in the sector, will be trained over the next 10 years

Five global Semicon companies have expressed interest in establishing semiconductor fabrication (fab) and display fab plants in India

The scheme will provide numerous reimbursement opportunities for design and post-silicon validation activities on multi-project wafers (MPWs)

The Semiconductor production linked incentive (PLI) scheme’s budget is INR 76,000 crore

The government plans to allocate US$ 10 million of the “Programme for Development of Semiconductors and Display Manufacturing Ecosystem” PLI scheme, for developing the electronic chip ecosystem in the country. This development falls under the Design-Linked Incentive (DLI) program, which is expected to support 100 companies involved in the product design of the semiconductor space. This announcement was made by Rajeev Chandrashekar at SemiconIndia, a conference organized by the India Semiconductor Mission in collaboration with the industry’s top players, to examine ways for making India a global hub for semiconductor design, production, and technology development.

The PLI scheme’s budget for promoting the designing, developing, and production of semiconductors domestically, is INR 76,000 crore.

The scheme also provides reimbursement of up to INR 30 lakh per application for design and post-silicon validation activities on multi-project wafers (MPWs); reimbursement of up to 50% of eligible expenditure for designing semiconductor goods, subject to a maximum INR 15 crore per application; and reimbursement of 6% to 4% of net sales of designed semiconductor goods over 5 years, subject to a maximum INR 30 crore.

Cyient, WiSig Networks, and IIT Hyderabad have signed memorandums of understanding to enable mass manufacture of the 5G Narrowband-IoT- the Koala Chip. Signalchip Innovations, the Ministry of Electronics and Information Technology (MeitY), and the Centre for Development of Advanced Computing (C-DAC) have inked a deal to design, manufacture, and deploy one million Integrated NavIC (Navigation with Indian Constellation) and GPS Receivers.

Under the scheme, 85,000 semiconductor engineers across different departments of the sector, will be trained over the next decade, according to Telecom and IT Minister Ashwini Vaishnaw. 

So far, five global Semicon companies have expressed interest in establishing semiconductor fabrication (fab) and display fab plants in India. The proposals in the greenfield category of display and semiconductor chip production have totaled US$ 20.5 billion.