Subsidy for DLI Semiconductor Scheme: Complete Guide
DLI semiconductor Subsidy

Eligibility For Availing Incentives Under The Scheme

  1. Financial incentives and design infrastructure support will be extended to domestic companies, Startups and MSMEs engaged in semiconductor design or semiconductor-linked design.
  2. The approved applicants that claim incentives under the scheme shall retain their domestic status (i.e. more than 50% of the capital in it is beneficially owned byresident Indian citizens and/ or Indian companies, which are ultimately owned and controlled by resident Indian citizens) for a period of three years after claiming incentives under the scheme

Disbursement of Incentives

  1. Design Infrastructure support: The support under this category may be
    claimed by the applicant subsequent to receiving the approval letter from
    Nodal Agency.
  2. Product Design Linked Incentive (P-DLI): The claim under this category
    may be submitted subsequent to meeting the linked milestone as indicated
    in the approval letter from Nodal Agency.
  3. Deployment Linked Incentive (DLI): The claim under this category may
    be submitted as early as the end of the quarter in which the threshold criteria
    for the year in consideration have been met.

Threshold and Ceiling Limits

  1. Ceiling Limits for the Design Infrastructure Support under the Scheme
    1.1 Reimbursement of up to ₹30 Lakh per application for MPW fabrication of design
    and post-silicon validation activities.
    1.2 Access to national EDA Tool grid and IP Core repository.
    Application details for seeking support for the Design Infrastructure to be setup under the
    Scheme will be issued separately.
  2. Ceiling Limits for availing the Product Design Linked Incentive (P-DLI) under the
    Scheme

    Milestones linked reimbursement of up to 50% of the eligible expenditure subject to a
    ceiling of ₹15 Crore per application for designing semiconductor goods indicated under
    Target Segment and making them ready to be demonstrated in operational environment
    and volume production.
  3. Threshold amount for availing the Deployment Linked Incentive (DLI) under the
    Scheme

    Reimbursement of 6% to 4% of net sales of designed semiconductor goods over 5 years
    subject to a ceiling of ₹30 Crore shall be made per application.
    3.1 Following is the rate of incentive to be reimbursed on the net sales of designed
    semiconductor goods within the scope of the proposal submitted by the Applicant
    from Financial Year 2022-23 onward

TARGET SEGMENT THRESHOLD AMOUNT OF NET SALES TO BE MADE BY APPLICANT RATE OF INCENTIVE ON NET SALES
Sale of Semiconductor designs for Integrated Circuits (ICs), Chipsets, System of Chips (SoCs), Systems or IP Cores and semiconductor linked designs. i) ₹1 Crore from Year 1 to Year 5 for Startup & MSME  (ii) ₹5 Crore from Year 1 to Year 5 for domestic companies other than Startup & MSME. Year 1: 6% Year 2: 6% Year 3: 5% Year 4: 5% Year 5: 4%

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