CHENNAI: Chief Minister C Joseph Vijay on Thursday launched the Tamil Nadu Semiconductor Ecosystem Scheme, aimed at attracting investments in chip manufacturing and positioning Tamil Nadu as one of India’s leading hubs for advanced electronics manufacturing.
The scheme launched at the secretariat seeks to strengthen the state’s semiconductor ecosystem by offering additional financial incentives over and above the assistance offered by the centre and is tailored to support companies investing in the sector.
The scheme is designed to promote investments across semiconductor manufacturing value chain, including wafer fabrication, raw materials, assembly, testing, packaging and supply.
The scheme will be implemented under two categories. Under the first category, TN will provide additional incentives to projects approved under the centre’s Semicon India Programme 2.0 and the India Semiconductor Mission.
Scheme to boost state’s position in high-end chip manufacturing
The additional financial assistance will be extended to projects approved under the Semicon India Programme 2.0 and the India Semiconductor Mission.
Under the second category, the state will offer customised, need-based incentives to eligible projects that are not covered by the centre’s scheme but are considered strategically important for developing TN’s semiconductor ecosystem.
The initiative follows the CM’s announcement in the Assembly in August that a Semiconductor and Electronics Park would be established at Madhuramangalam in Kancheepuram district.
While presenting the 2026-27 demand for grants, Industries Minister S Keerthana had also announced that the state would introduce a dedicated incentive scheme aligned with the union government’s semiconductor incentive programme to meet the specific requirements of companies setting up operations in Tamil Nadu.
The initiative is expected to strengthen Tamil Nadu’s position in advanced manufacturing while creating opportunities to expand its semiconductor and electronics industries.
Minister for Industries S Keerthana, Chief Secretary Dr M Saikumar; Additional Chief Secretary S Vijayakumar, Managing Director and Chief Executive Officer, Guidance, Deepak Jacob, and senior officials were present.
The union cabinet approved the Semicon India Programme 2.0 on July 15 this year to strengthen the entire semiconductor value chain.
