India has approved financial support for 23 semiconductor design projects under its Design Linked Incentive (DLI) Scheme, aimed at strengthening the domestic chip ecosystem through support for startups, micro, small and medium enterprises, and academic institutions,according to a press release by India’s Press Information Bureau.

The DLI programme, part of the broader Semicon India initiative with a total outlay of INR760bn ($9.1bn), allocates INR10bn for chip design incentives. The scheme addresses the sector’s traditionally high entry barriers and long development timelines, offering both infrastructure and financial assistance. India’s Ministry of Electronics and Information Technology stated on July 30, 2025, that 278 academic institutions and 72 startups now have access to advanced Electronic Design Automation (EDA) tools under the DLI and C2S frameworks.

These tools help early-stage design prototyping and development. Since the launch of the DLI scheme in December 2021, 10 of the 23 sanctioned companies have secured venture capital to scale their designs, while six have completed prototype tape-outs at semiconductor foundries. In addition, India’s SCL in Mohali has successfully fabricated 20 chip designs developed by 17 academic institutions.

The government offers up to 50% support for design and prototyping costs, capped at INR150mn per application, along with sales-linked incentives of 4% to 6%, up to INR300mn. India’s Union Electronics Minister Jitin Prasada told the country’s parliament that a total of INR8.03bn in DLI-backed projects have been cleared, with funds to be disbursed upon achieving specific development milestones.