CHENNAI: In a bold push to become a dominant player in the global electronics supply chain, Tamil Nadu on Wednesday launched the ‘Tamil Nadu Electronics Components Manufacturing Scheme’, a focused initiative to build an integrated electronics manufacturing ecosystem anchored on high-growth, niche components.
Chief Minister M.K. Stalin inaugurated the scheme, which aims to attract Rs 30,000 crore in investment and generate 60,000 jobs across the state. The initiative zeroes in on eleven specific components, including flexible printed circuit boards (FPCBs) for wearable technology, lithium-ion cells, display modules, and passive components, sectors identified for their potential to yield rapid growth and differentiation.
The scheme reflects the state's evolving strategy to deepen its electronics base by focusing on underdeveloped but high-demand segments. “Building on existing strengths, we are focusing on niche markets where Tamil Nadu can establish a unique ecosystem,” said Industries Minister Dr. TRB Rajaa.
Rather than merely drawing in investment, the initiative aims to develop a self-sustaining industrial environment where both major manufacturers and their suppliers can co-exist.
As part of this strategy, the government will secure land near upcoming investment hubs to support ancillary growth and reduce logistical dependencies.
In a significant move, the state has pledged to match subsidies under the central government’s Electronics Component Manufacturing Scheme, offering investors a dual-incentive structure to set up operations in Tamil Nadu.
The timing of the announcement aligns with heightened national interest in electronics manufacturing, especially as Apple scales up domestic production. Apple already manufactures 70 per cent of India’s iPhones in Tamil Nadu, and Rajaa confirmed the state aims to further increase its share, solidifying its position in the global technology supply chain.
Looking beyond smartphones, the Industries Minister also emphasised the need for a more balanced national strategy in semiconductor manufacturing. "India cannot rely on just one state for chip production," Rajaa said, urging the Centre to decentralise investments and leverage southern states' existing supply chains.
Earlier this year, Tamil Nadu unveiled the 'Semiconductor and Advanced Electronics Policy 2024', another strategic initiative aimed at attracting high-tech investment.
The state is already seeing results, in the 2024-25 financial year, Tamil Nadu became the first Indian state to record USD 14.65 billion in electronics exports, a figure expected to grow with the rollout of the new scheme.