It consists of a "bump" and a forward-swept inlet cowl, which work together to divert boundary layer airflow away from the aircraft's engine.
[1] The fundamental design of a gas turbine engine is such that the air flow-rate entering its compressor is regulated by the amount of fuel burned in its combustor.
The DSI bump functions as a compression surface and creates a pressure distribution that prevents the majority of the boundary layer air from entering the inlet at speeds up to Mach 2.
Initial research into the DSI was done by Antonio Ferri in the 1950s, and further developed & optimized by Lockheed Martin in the early 1990s using computational fluid dynamics.
A DSI was incorporated into the design of the Lockheed Martin F-35 Lightning II in 2000 after proving to be 30% lighter and showing lower production and maintenance costs over traditional inlets while still meeting all performance requirements.
In comparison, DSI eliminates all moving parts, which makes it far less complex and more reliable than earlier diverter-plate inlets.