Misplaced interest

Govt equity in chip design firms is impractical

The government’s efforts to stimulate a domestic semiconductor industry are well-meaning but could fritter away taxpayer money. It has launched a two-pronged effort in this regard. First, it has offered to underwrite 30-50 per cent of the expenditure on foundries, depending on the nature of the semiconductors being manufactured. Second, it is offering some Rs. 55,392 crore production-linked incentives for electronic hardware and semiconductors. The third element, announced in 2022, is the design-linked incentive, or DLI, which offers financial incentives and design infrastructure support to domestic companies, start-ups, and small and medium enterprises for up to five years. The aim