DLI Scheme — 50% Reimbursement up to ₹15 Crore for Chip Design, Plus 4–6% of Sales
Paying Indian companies to design chips in India
The Design Linked Incentive Scheme is the fabless half of the India Semiconductor Mission. It backs domestic companies, startups and MSMEs that design integrated circuits, chipsets, systems-on-chip, systems and IP cores, or semiconductor-linked designs, with three things: access to industry-grade EDA tools and IP through C-DAC's ChipIN centre, reimbursement of half the design cost, and a share of sales once the chip ships. By mid-2025, 23 projects had been approved and 72 companies had EDA access; a 24th followed by January 2026, across video surveillance, drone detection, energy metering, microprocessors, satellite communications and IoT SoCs.
The three components
| Component | What you get | Cap |
|---|---|---|
| Chip design infrastructure | EDA tools, IP cores, multi-project-wafer prototyping, post-silicon validation through C-DAC | As allocated |
| Product Design Linked Incentive | Reimbursement of up to 50% of eligible expenditure on design | ₹15 crore per application |
| Deployment Linked Incentive | 6% of net sales turnover in early years, tapering to 4%, for five years | ₹30 crore per application |
MeitY, ISM and C-DAC
MeitY owns the scheme under the India Semiconductor Mission; C-DAC is the nodal agency that screens applications, runs the ChipIN infrastructure and processes claims. A technical evaluation committee assesses design merit and commercial potential; MeitY approves.
Domestic designers, held domestic
- •Domestic company, startup or MSME engaged in semiconductor design or semiconductor-linked design
- •Target: ICs, chipsets, SoCs, systems, IP cores, or semiconductor-linked designs
- •More than 50% beneficial ownership by resident Indian citizens or Indian companies ultimately owned and controlled by residents — and retained for three years after claiming incentives
- •A defined product design project with a commercialisation plan
What the DLI portal and C-DAC require
- •Certificate of Incorporation, MoA/AoA, shareholding with ultimate beneficial ownership and residency proof
- •DPIIT recognition or Udyam certificate
- •Technical proposal: design specification, architecture, target node and foundry, IP plan, milestones
- •Project cost with eligible-expenditure classification; audited financials for prior years
- •Commercialisation plan with target customers and volumes
- •Team CVs and prior tape-outs
- •At claim stage: statutory auditor certificates of expenditure and net sales, invoices, and sales registers
Questions founders ask about DLI
No. The design incentive is a reimbursement of expenditure already incurred, claimed against audited costs. The deployment incentive is paid on actual net sales.
Yes. The design incentive and EDA access do not need revenue; the deployment incentive starts when the chip sells.
Design-related costs as defined in the guidelines — EDA licences, IP licensing, manpower, MPW runs, validation. Capital assets and general overheads are treated per the guidelines.
No. C2S is a capacity-building programme centred on academia; DLI is the commercial incentive for companies. A startup may benefit from both.