DLI 2.0 may shift from reimbursements to equity-linked support

The government’s proposed Design Linked Incentive (DLI) scheme 2.0 for semiconductor and chip design companies is expected to shift from the reimbursement-heavy structure in its first iteration, with policymakers pushing for greater accountability, ownership, and control over intellectual property created with public funds.

The second phase of the scheme is being reworked to ensure that government support is no longer “free money”, and is instead linked to some form of equity, debt, or ownership consideration, said a senior official familiar with the discussions.