INCENTIVE FOR SEMICONDUCTORS

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• The Ministry of Electronics and Information (MeitY) is seeking applications from 100 domestic semiconductor chip design firms, companies, start-ups and Micro, Small and Medium Enterprises (MSMEs) under its Design Linked Incentive (DLI) Scheme.
• The DLI scheme is part of the MeitY’s comprehensive Program for the Development of Semiconductors and Display Manufacturing Ecosystems in the country.
• Lately, there has been an abrupt and cascading shortage of semiconductors worldwide.

Semiconductors

• Any of a class of crystalline solids intermediate in electrical conductivity between a conductor and an insulator.
• Semiconductors are employed in the manufacture of various kinds of electronic devices, including diodes, transistors, and integrated circuits. Such devices have found wide application because of their compactness, reliability, power efficiency, and low cost.
• As discrete components, they have found use in power devices, optical sensors, and light emitters, including solid-state lasers.

Important points:

• Under the DLI Scheme financial incentives and design infrastructure support will be extended to domestic companies, startups and MSMEs.
• The incentives will be provided across various stages of development and deployment of semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design for over a period of 5 years.
• The approved applicants that claim incentives under the scheme will be encouraged to retain their domestic status (i.e., more than 50% of the capital in it is beneficially owned by resident 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.
• An applicant must meet the Threshold and Ceiling Limits to be eligible for disbursement of incentives under the Scheme.
• A dedicated portal has also been made available.
• The DLI Scheme will also take a graded and pre-emptive approach to Identify the Products of national priorities and implement strategies for their complete or near complete indigenisation & deployment thereby taking steps towards the import substitution & value addition in strategic & societal sectors.
• C-DAC (Centre for Development of Advanced Computing), a scientific society operating under MeitY, will serve as the nodal agency for implementation of the DLI scheme.
• The scheme has three components – Chip Design infrastructure support, Product Design Linked Incentive and Deployment Linked Incentive:
• Under this, C-DAC will set up the India Chip Centre to host the state-of-the-art design infrastructure (viz. EDA Tools, IP Cores and support for MPW (Multi Project Wafer fabrication) & post-silicon validation) and facilitate its access to supported companies.

SOURCE: THE HINDU,THE ECONOMIC TIMES,MINT