Science ยท GS3
Design Linked Incentive Scheme
One line
PIB reviewed progress under the Design Linked Incentive Scheme, which supports domestic semiconductor and system-on-chip design.
Summary
Chip design captures a large share of semiconductor value even when fabrication occurs elsewhere. India needs design firms, verification tools, intellectual property, fabrication access, packaging, and customers to turn engineering talent into products.
PYQ pattern
UPSC tests strategic technologies through supply chains, indigenous capability, intellectual property, and public incentives. Use the official UPSC question-paper archive.
Core notes
- The scheme operates under the Semicon India Programme and India Semiconductor Mission.
- PIB reported 24 supported projects, 16 tape-outs, six application-specific integrated circuits, and more than 1,000 engineers engaged.
- A tape-out is the final design release sent for fabrication. It is not the same as commercial mass production.
Prelims lens
- Fabless firms design chips but outsource fabrication.
- An application-specific integrated circuit is built for a defined use.
- Semiconductor design and wafer fabrication are different parts of the value chain.
MCQ 1
In semiconductor development, tape-out refers to:
- A. Sending a completed design for fabrication
- B. Recycling a finished mobile phone
- C. Mining silica sand
- D. Setting a telecom tariff
Reveal answerHide answer
A
Tape-out marks the release of a verified design to a fabrication facility.
MCQ 2
Consider the following statements:
- Fabless companies may design chips without owning a wafer fab.
- Chip design and semiconductor fabrication are identical activities.
- A. 1 only
- B. 2 only
- C. Both 1 and 2
- D. Neither 1 nor 2
Reveal answerHide answer
A
Fabless design and fabrication are separate stages, although they must work closely together.
Mains
Question, 10 marks, 150 words: Why must India's semiconductor policy support design, fabrication, packaging, and demand together?
Approach:
- Map the semiconductor value chain.
- Explain value capture and strategic dependence.
- Discuss capital costs, tools, talent, and market risk.
- Suggest shared infrastructure, patient finance, procurement, and global partnerships.