CHENNAI: Tamil Nadu Industrial Development Corporation (TIDCO) has floated a tender to establish a Centre of Excellence for Semiconductor Design and Testing Infrastructure Development which will support the full product lifecycle — from design and validation to pilot manufacturing.
According to sources, the centre will serve as a state-of-the-art facility supporting industries in semiconductor design, prototyping and testing. The initiative will act as a bridge between academia, start-ups and established manufacturers with emphasis on supporting medium, small and micro enterprises and early stage ventures that typically lack access to capital-intensive testing and fabrication infrastructure.
The centre will be housed in a for-profit special purpose vehicle (SPV) structured as a joint venture between TIDCO and the selected private proposer. TIDCO has offered grant support of up to 40% of the project cost, capped at Rs 75 crore, excluding land costs.
Grant disbursements will be milestone-linked and subject to verification by the state agency, while the remaining investment will be brought in by the private partner and its consortium members. Irrespective of the size of the grant, TIDCO will retain a minimum 20% equity stake in the SPV or an equity share proportionate to the grant contribution, whichever is higher.
This holding may be diluted to as low as 5% to accommodate future investors, subject to board approval, and the state agency has also kept the option open for additional equity investments. TIDCO will appoint the chairman and one director to the SPV’s board, while the managing director will be selected through a defined process.
The indicative facilities envisaged for the centre include product testing, validation and certification laboratories equipped with automated test equipment, system-level testing, EMI/EMC, reliability, failure and safety testing infrastructure.
Other proposed components include a battery management systems lab, a small-scale “inch fab”, a design and prototype development centre capable of assembly and pilot fabrication, a customer experience gallery, and an authorised training and skill development centre. Bidders are free to propose additional facilities aligned to emerging technologies or market demand.
Operationally, the SPV will be responsible for marketing, operations and maintenance, and revenue generation. Potential income streams outlined in the tender range from testing and validation services and design support to component production, consulting and training programmes.
On land, bidders must specify their requirement and preferred location within Tamil Nadu. TIDCO has said it will facilitate land allotment on a nominal rental basis, subject to availability, though proposers may alternatively choose to house the centre in facilities developed on their own premises.