Ministry: Ministry of Electronics and IT
Aim: To create a vibrant ecosystem for Semiconductor Chip Design in the country.
Target: To nurture at least 20 domestic companies involved in semiconductor design and facilitate them to achieve a turnover of more than ₹1500 Crore in the next 5 years.
Nodal Agency: C-DAC (Centre for Development of Advanced Computing)
Eligibility: Financial incentives and design infrastructure support will be extended to domestic companies, startups and MSMEs engaged in 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.
Components: The scheme has three components:
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Chip Design infrastructure support: 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.
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Product Design Linked Incentive: Under this, reimbursement of up to 50% of the eligible expenditure subject to a ceiling of ₹15 Crore per application will be provided as a fiscal support to the approved applicants who are engaged in semiconductor design.
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Deployment Linked Incentive: Under this, an incentive of 6% to 4% of net sales turnover over 5 years subject to a ceiling of ₹30 Crore per application will be provided to approved applicants whose semiconductor design for Integrated Circuits (ICs), Chipsets, System on Chips (SoCs), Systems & IP Cores and semiconductor linked design are deployed in electronic products.
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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.