Semiconductor and Electronics R&D Schemes in India

India has built a set of schemes and institutions to strengthen its semiconductor and electronics ecosystem. The focus is on design, research, fabrication, packaging, skills, and commercialization so that domestic capabilities grow across the value chain.

India Semiconductor Mission and Semicon 2.0

The India Semiconductor Mission (ISM) is the nodal agency for the development of India’s semiconductor and display ecosystem. Under this framework, the government is expanding support through Semicon 2.0 to promote a self-reliant technological base and supply chain.

• Fiscal outlay: Semicon 2.0 has been approved with a total outlay of ₹1,27,500 crore. A budgetary allocation of ₹1,000 crore has been provided for the financial year 2026–27.
• Six pillars: The scheme operates through six pillars — Design, Machines and Materials, Setting up more Fabs, ATMP/OSAT, Research and Development, and Talent Development.
• Ecosystem expansion: Under the broader semiconductor and display ecosystem initiatives, the government has approved ten manufacturing and packaging projects across the country with a cumulative investment of about ₹1.60 lakh crore.

Chips to Start-up (C2S) Programme and ChipIN Centre

The Chips to Start-up (C2S) Programme is an academic and startup capacity-building initiative aimed at strengthening Very Large Scale Integration (VLSI) design and embedded systems. It addresses infrastructure gaps as well as the shortage of skilled manpower in semiconductor design.

• Launch and outlay: The programme was launched in 2022 with a total outlay of ₹250 crore over five years.
• Training objective: It was intended as a foundational scheme for technical training and semiconductor prototyping.
• Original target: The initial ten-year target under C2S was to train 85,000 semiconductor engineers.
• Revised target: After the completion of this target, the government set a revised target to train an additional 1 lakh semiconductor engineers under Semicon 2.0.
• ChipIN Centre: Established at C-DAC Bangalore under the C2S Programme, the ChipIN Centre is a cloud-supported facility for academic institutions, startups, and MSMEs.
• Support provided: It offers access to advanced Electronic Design Automation (EDA) tools, foundry access, and prototyping laboratories.

Deployment-Linked Incentive (DLI) Scheme

The Deployment-Linked Incentive (DLI) scheme supports the design pillar by encouraging commercial deployment of domestic semiconductor technologies. It is intended to promote market success for Indian designs and intellectual property.

• Incentive rate: The revised DLI under Semicon 2.0 provides a direct reimbursement of 9% on net sales of semiconductor designs for five years.
• Ceiling per application: The payout is capped at ₹30 crore per application.
• Company-wise cap: The cumulative cap is ₹120 crore per company.
• Eligible categories: The scheme applies to newly developed Indian semiconductor IP, chips, and Systems-on-Chip (SoCs) designed by domestic entities.

India Semiconductor Research Centre (ISRC)

The India Semiconductor Research Centre (ISRC) has been conceptualized to bridge the gap between academic research and commercial fabrication. It is meant to strengthen advanced semiconductor research and help move innovations into industrial production.

• Operating model: The ISRC is structured as a private-industry-led R&D institution functioning on a public-private partnership (PPP) model.
• Core objective: Its mandate is to transition next-generation chip research into production systems.
• Focus areas: The research emphasis includes advanced packaging and new semiconductor materials.

Why These Schemes Matter

• Design ecosystem: C2S, ChipIN, and DLI collectively support the design and prototyping pipeline.
• Manufacturing push: Semicon 2.0 expands support for fabs and ATMP/OSAT facilities.
• Skill creation: The talent component aims to build a larger semiconductor workforce.
• Research linkages: ISRC is designed to connect academic research with industry requirements.
• Commercialization: DLI helps domestic design firms move from innovation to market deployment.
• Institutional support: ISM provides the nodal framework under MeitY for coordinated growth of the sector.

Key Prelims Takeaways

• ISM: The India Semiconductor Mission is the nodal agency under the Ministry of Electronics and Information Technology (MeitY).
• Semicon 2.0 outlay: The approved fiscal outlay is ₹1,27,500 crore, with ₹1,000 crore</b allocated for 2026–27.
• Six pillars: Design, Machines and Materials, Fabs, ATMP/OSAT, R&D, and Talent Development.
• C2S Programme: Launched in 2022 with an outlay of ₹250 crore over five years.
• Talent targets: C2S originally targeted 85,000 engineers; Semicon 2.0 adds a revised target of 1 lakh more engineers.
• DLI scheme: Provides 9% reimbursement on net sales for five years, capped at ₹30 crore per application and ₹120 crore per company.
• ChipIN Centre: Located at C-DAC Bangalore; it provides EDA tools, foundry access, and prototyping support.