Govt Approves Financial Support for 23 Companies to Develop Chipsets: MoS IT

The government has approved financial support for 23 companies to develop chipsets under the design-linked incentive scheme, Parliament was informed on Wednesday.

Minister of State for Electronics and IT Jitin Prasada, in a written reply to Lok Sabha, said that 10 companies have raised venture capital (VC) funding for scaling up their design prototypes for commercialisation, and six companies have successfully taped out their prototype designs at advanced and mature technology nodes of various semiconductor foundries.

"72 domestic companies have been approved under the DLI Scheme for access to state-of-the-art Electronic Design Automation (EDA) tools. These companies are at different stages of developing semiconductor designs for various applications. Out of these, 23 companies have also been approved for financial support for developing SoCs for surveillance cameras, energy meters, microprocessor IPs, networking applications etc," the minister said.

He said that the DLI scheme provides financial incentives of up to 50% of eligible costs, with a ceiling of ₹15 crore per application for design prototyping, scaling-up and volume production.

"To enable companies to deploy and commercialise their Intellectual Property (IP) cores, chips, and System-on-Chip (SoC) solutions, the scheme offers financial incentives ranging from 6 to 4 per cent of net sales turnover, up to ₹30 crore per application over five years," Prasada said.