New PLI scheme for IT hardware on anvil

Future Design Programme

- Govt encouraging startups to work with the leading global majors

- Startups should develop devices either co-owned or owned, for which the govt announced Future Design Programme

- Future Design Programme has $200 mn for startups that will design devices for next generation applications

Hyderabad: The Central government will soon launch an information technology server and IT hardware production linked incentive (PLI) scheme, and also offer additional incentives for manufacturers that incorporate Indian-designed intellectual property into their products, Union Minister of State for Electronics and IT Rajeev Chandrasekhar said on Tuesday.

Virtually addressing the VLSI Design Conference 2023 that began here, Chandrasekhar said the government has announced Future Design Programme, which invests $200 million in startups that will design or co-design IP, tools or devices for the next generation of applications in India.

"By 2024, we believe India would have stepped into the semiconductor manufacturing space and catalysed a more domestic design and innovation ecosystem where we are encouraging startups to work with the leading global majors to develop IP, to develop devices either co-owned or owned for which the government has announced Future Design Programme," he said.

"To make sure that these devices and the innovation ecosystem is fully supported by the market, we will soon be launching an IT server and an IT hardware PLI that will be similar to the mobile phone PLI which has been extremely successful. In the IT PLI, we will create additional incentives for those manufacturers and original equipment manufacturers (OEMs) that incorporate Indian-designed IP into their systems, into their products," he said.

By 2024, we believe India would have stepped into the semiconductor manufacturing space and catalysed a more domestic design and innovation ecosystem

- Rajeev Chandrasekhar, MoS for IT and Electronics