CHENNAI: Tamil Nadu has unveiled plans to create a centre of excellence (CoE) for semiconductor design and testing and is seeking private partners to co-invest in a joint venture that would position the state as a serious contender in India’s semiconductor drive.
Tamil Nadu Industrial Development Corporation (TIDCO) has floated a request for proposals (RFP) to set up the centre under a joint venture model, structured as a special purpose vehicle. TIDCO will hold a minimum 20 per cent equity stake and provide grant funding of up to Rs 75 crore, or 40 per cent of the project cost, with the balance to be raised by the winning bidder and partners. Equity may later be diluted to 5 per cent to accommodate fresh investors, subject to board approval, according to official sources.
The proposed hub will provide state-of-the-art facilities for design, prototyping and validation, including automated test equipment, reliability and safety labs and pilot production support. A training and skills arm will also be built to cultivate talent for the sector.
Beyond supporting major firms, the CoE will prioritise MSMEs and startups, enabling them to access testing and validation labs, reliability checks and prototype fabrication services. The initiative is designed to promote indigenous semiconductor capabilities, reduce import dependency and align Tamil Nadu with emerging global technology trends.
As part of the proposal, bidders are required to specify land requirements and preferred locations within Tamil Nadu. TIDCO has said it will facilitate land allocation on a nominal rental basis, subject to availability and conditions, though proposers may also develop the centre on premises arranged independently.
Officials say the initiative aims to lower barriers for startups and MSMEs, giving them access to infrastructure that would otherwise demand heavy upfront capital. By doing so, Tamil Nadu hopes to anchor a broader semiconductor ecosystem and attract global firms seeking design and testing capacity.
The initiative builds on the Tamil Nadu Semiconductor and Advanced Electronics Policy 2024, which seeks to develop a state-of-the-art manufacturing and design ecosystem in higher value-added segments of the semiconductor and electronics industry, while creating high-quality employment.