India Launches DLI 2.0 To Boost Domestic Semiconductor Manufacturing

2025-09-10 02:09:38

(MENAFN- KNN India) New Delhi, Sep 10 (KNN) In a major step to strengthen its semiconductor ecosystem, the Indian government is preparing to launch the upgraded Design-Led Incentive scheme, known as DLI 2.0.

The revised plan aims to boost domestic chip design and manufacturing by offering fiscal incentives and introducing mandatory sourcing rules for consumer electronics companies.

Under this framework, incentives will cover 25 categories of products, including televisions, air conditioners, refrigerators, telecom gear, energy meters, and IoT devices.

The move is designed to make indigenous chipsets more cost-effective and ensure wider adoption in the Indian electronics market.

Industry experts have pointed out that while chip manufacturing plants are critical, sustained demand is equally important to attract global players to invest in India.

To address this, the Ministry of Electronics and IT (MeitY) is linking incentives with sourcing mandates, ensuring that local manufacturers integrate Indian-made semiconductors into their products.

Officials expect these steps to raise the value addition in local manufacturing from the current 15% to as high as 35%, depending on the complexity of devices.

This will not only deepen India's electronics supply chain but also reduce import dependence in critical sectors.

The government also plans to extend support for chip design through access to costly Electronic Design Automation (EDA) tools. So far, 278 academic institutions and 72 companies have benefited from this facility.

Since its launch in 2021, the DLI scheme has supported 23 projects, enabling startups and MSMEs to design chips for applications like surveillance systems, smart meters, and networking solutions.

By combining financial support with demand generation, DLI 2.0 is expected to accelerate investment, encourage innovation, and establish India as a stronger player in the global semiconductor market.

(KNN Bureau)

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