Semicon firms caution govt against rigid DLI framework

As the government mulls a shift in the design-linked incentive (DLI) scheme for chip design toward equity- and debt-linked support under an in-the-works DLI 2.0 framework, founders of semiconductor startups are urging caution. They say rigid rules and bureaucratic delays could undermine the ecosystem the scheme aims to strengthen.

Industry executives broadly welcomed the intent to deepen state support for chip design companies but flagged concerns around venture capital (VC) compatibility, the structure of funding instruments, and the need for continuity for firms graduating from DLI 1.0.