India’s big semiconductor push: Key announcements from the IT Ministry in the DLI Scheme

The Ministry of Electronics and IT (MeitY) on Friday announced that the government has approved 23 semiconductor design projects under its Design Linked Incentive (DLI) Scheme.

This scheme aims to encourage domestic startups and MSMEs to develop indigenous chips and System on Chips (SoCs) for applications such as surveillance, energy meters, networking, and microprocessors.

The ministry also revealed that 72 companies have gained access to advanced Electronic Design Automation (EDA) tools.

The Centre’s Semicon India Programme has already approved 10 projects in key areas such as high-volume fabs, 3D packaging, compound semiconductors, and OSATs including Tata Electronics’ Dholera and Assam facilities and Micron facility in Sanand, work for which has already started.

Under the program, the government is also supporting more than 280 academic institutes across the country.

These engagements with private players are set to strengthen India’s role in the global semiconductor value chain and show the country's focus on self-reliance.

“Through these initiatives, India is progressing well towards developing the capacity to design and manufacture semiconductors for applications such as Closed-Circuit Television (CCTV), navigation systems, motor controllers, communication chips and microprocessor units,” the ministry said in a statement.

All these efforts are a part of the India Semiconductor Mission, which has been running since 2021. The mission started with an outlay of ₹76,000 crore under MeitY.

These announcements came in the wake of the IT ministry revealing the details on SEMICON India 2025 at a press conference on Friday.

Prime Minister Narendra Modi will inaugurate the fourth edition of SEMICON India 2025, the country's largest semiconductor and electronics show. The 3-day event is scheduled for September 2 - September 4, in New Delhi this year.

The event is expected to see representatives from over 33 nations, 50 global CXOs, and 50 speakers.

Organised by global industry body SEMI in partnership with India Semiconductor Mission (ISM) under MeitY, the theme for this year’s expo is Building the Next Semiconductor Powerhouse. The event will showcase innovations in fabs, packaging, smart manufacturing, AI, supply chains, sustainability, and workforce development. Country pavilions, state participation, six international roundtables, keynotes, panels, and networking opportunities will be central features.

As in the past editions, companies such as Applied Materials, ASML, IBM, Micron, Siemens, SK Hynix, Tata Electronics, and Tokyo Electron are expected to participate.