India's Semiconductor Push: A DLI Scheme Expansion

India is set to boost its semiconductor production efforts by expanding the Design Linked Incentive scheme, providing up to 70% of project costs as incentives. This unprecedented support includes $30 billion in grants and capital, targeting large domestic companies alongside MSMEs and startups in the semiconductor industry.

India is ramping up its semiconductor production push, with the potential for critical projects to receive incentives covering up to 70% of total costs from both central and state governments. This announcement came from Electronics and IT Secretary S Krishnan during the Semicon India event.

The ambitious support initiative will allocate around $30 billion in various benefits and incentives. Capital support currently stands at 50% from the central government, complemented by an additional 20% from state authorities.

Central to these efforts is the Design Linked Incentive (DLI) scheme, initially focused on startups and MSMEs, now being expanded to support larger domestic firms. MediaTek India's Anku Jain noted the significant boost recent policies have provided to the sector, anticipating further growth with the broadened DLI scope.

(With inputs from agencies.)