Tamil Nadu has stepped up efforts to position itself as a semiconductor innovation hub, launching a new design promotion scheme that will provide subsidies and prototyping grants to fabless design firms. The initiative is part of the state’s larger vision of building a “Product Nation Tamil Nadu.”
The scheme will be anchored by Centres of Excellence, to be set up by the Tamil Nadu Industrial Development Corporation (TIDCO) in partnership with private companies and universities. These centres will offer testing facilities, research infrastructure, and training programs, aimed at creating a strong talent pool of chip designers.
This latest push builds on the ₹500 crore Tamil Nadu Semiconductor Mission 2030 (TNSM 2030) announced in the state budget, which sets out a five-pillar strategy covering chip design, testing infrastructure, semiconductor machinery manufacturing parks, a pilot fabrication unit, and workforce development.
Industries Minister TRB Rajaa described the design scheme as “critical early-stage support” for local fabless companies, emphasising that it would help Tamil Nadu cultivate home-grown intellectual property and reduce dependence on global supply chains. “By supporting design-led innovation and enabling domestic IP, we are laying the foundation for Tamil Nadu to become a global hub for tech products and solutions,” he said.
Building Talent and Infrastructure for Tamil Nadu’s Chip Ecosystem
Skills development is at the heart of the initiative. Under the India Semiconductor Workforce Development Programme, about 1,000 engineering students will receive training, with select candidates sponsored for advanced study at leading institutions in India and abroad. In addition, a dedicated “School of Semiconductors” is being established in collaboration with IIT and industry partners, featuring a small-scale fabrication and prototyping facility. This school aims to train nearly 4,500 technicians in fabrication, testing, and packaging.
To strengthen infrastructure, the state has also earmarked land in Sulur and Palladam near Coimbatore for semiconductor equipment manufacturing parks, each spread across 100 acres, to support the development of specialized machinery and tools.
Industries Secretary V Arun Roy emphasized that the various components of Tamil Nadu Semiconductor Mission 2030 (TNSM 2030) are designed to create “a self-sustaining semiconductor value chain that will attract investment, generate employment, and foster innovation across Tamil Nadu.”
This initiative reflects not just Tamil Nadu’s ambitions, but also a wider national and global push to reduce dependence on foreign supply chains—a need underscored by recent global disruptions. However, the state’s real challenge will lie in converting policy ambition into tangible investment and technical capability in an industry that is highly capital-intensive and intensely competitive.
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