§1Who it is for
- Fab, display, compound semiconductor and OSAT investors
- Chip-design startups and MSMEs (DLI)
Useful if
Chip-design startups; precision engineering and specialty chemical MSMEs wanting to supply fabs.
Do not spend time on it if
General electronics assemblers.
§2Eligibility
- DLI: semiconductor design startups and MSMEs (detailed criteria in DLI guidelines — see the guideline).
§3Benefits
- Fabs and display fabs: fiscal support up to 50% of project cost (PIB Aug 2025).
- Compound semiconductors / ATMP / OSAT: up to 50% capital support.
- Design Linked Incentive: ₹1,000 crore outlay; up to ₹15 crore per company; reimbursement of R&D costs; access to EDA tools.
§4Norms — pattern of assistance
- Semicon 2.0 six pillars: design, machines & materials, more fabs, ATMP/OSAT, R&D, talent (PIB Jul 2026).
§5Documents
Not published
The guideline does not list the documents. Ask the portal or bank before you apply — we do not make up lists.
§6How to apply
- 1
Chip-design startups: check ISM / chips to startup portals for DLI calls.
§7Pros and cons
Merits
- DLI gives small design firms real money (₹234 crore committed to 22 companies by Aug 2025) and EDA tool access (PIB).
- Semicon 2.0 adds support for machines, materials, chemicals and gases — openings for Indian MSME suppliers.
Demerits
- Manufacturing support is for very large projects (thousands of crore).
- Semicon 2.0 operating rules not yet public.
→Related schemes
Need help with ISM / Semicon 2.0?
Eligibility check, DPR and application file — ask us on WhatsApp.
Our interestHelp is our paid service. You can also apply for the scheme yourself.
¶Sources
- PIB explainer, 3 Aug 2025: India's Semiconductor Revolution (ISM schemes, DLI)
- PIB Cabinet, 15 Jul 2026: Cabinet approves Semicon 2.0, ₹1,27,500 crore
- PIB backgrounder, 24 Aug 2025: PLI Scheme — Powering India's Industrial Renaissance
Checked on 18 October 2026. For information only — confirm with the department or bank. Spotted a mistake? Report it.