Chip industry pushes back as govt plans market-linked DLI 2.0 sops

As the government readies the second phase of its Design-Linked Incentive (DLI) scheme for semiconductors, differences have emerged between policymakers and industry over how public money should be deployed to back chip design companies, a senior government official said.

At the heart of the debate is the shift in DLI 2.0 from a reimbursement-based model to a pari-passu funding structure, where the government and the beneficiary invest side-by-side.