Homegrown chip companies fear MNCs will dip into their DLI 2.0 treat

Allowing multinational corporations to participate in the proposed second phase of the design-linked incentive (DLI) scheme through joint ventures with Indian startups could dilute the intended benefits for domestic semiconductor firms, beneficiaries of the first programme told ET.

The government has announced that it was working on the details of DLI 2.0, which would focus on six key categories of semiconductor devices, but has not yet disclosed the scheme framework or rules. Government officials indicated that it could allow up to a 49% foreign ownership in participating entities. The first phase of the scheme exclusively targeted local firms.