CHENNAI: Tamil Nadu has intensified its push to become a hub for semiconductor innovation, unveiling a new design promotion scheme offering subsidies and prototyping grants to fabless design firms. The initiative aligns with the state’s broader ambition to establish “Product Nation Tamil Nadu”.
The Semiconductor Design Promotion Scheme will be supported by new Centres of Excellence, to be established by the state-run Tamil Nadu Industrial Development Corporation (TIDCO) in collaboration with private firms and universities. These centres will offer testing facilities, research infrastructure, and training programmes aimed at nurturing a robust pipeline of skilled chip designers.
This move builds upon the Rs 500 crore Tamil Nadu Semiconductor Mission 2030 (TNSM 2030), announced in this year’s budget. The mission outlines a five-pillar strategy focused on 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.
Skills development is a core focus of the initiative. Approximately 1,000 engineering students will be trained under the India Semiconductor Workforce Development Programme, with select candidates sponsored for advanced study at leading institutions in India and abroad. Additionally, a “School of Semiconductors” is being established in partnership with IIT and industry players to host a small-scale fabrication and prototyping facility, where around 4,500 technicians will be trained in fabrication, testing, and packaging.
The state has earmarked land in Sulur and Palladam near Coimbatore for semiconductor equipment manufacturing parks, each spanning 100 acres, to boost the development of specialised machinery and tools.
Industries Secretary V Arun Roy noted that the various components of TNSM 2030 aim to form “a self-sustaining semiconductor value chain that will attract investment, generate employment, and foster innovation across Tamil Nadu”.
The initiative reflects a wider national and global effort to reduce reliance on foreign supply chains in a sector whose strategic importance has been underscored by recent global disruptions. For Tamil Nadu, the key challenge will be converting policy ambition into tangible investment and technical capability in an industry that remains highly capital-intensive and fiercely competitive.