TN unveils sops under ₹500-cr semiconductor mission

The Tamil Nadu government has announced a new Semiconductor Design Promotion Scheme as part of its ₹500-crore Tamil Nadu Semiconductor Mission 2030 (TNSM 2030), announced in the State Budget earlier this year.

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The scheme will provide targeted subsidies and prototyping grants to fabless design firms, strengthening the state’s push towards design-led innovation in the semiconductor sector, according to an official statement.

In addition, Centres of Excellence (CoEs) will be set up by the Tamil Nadu Industrial Development Corporation (TIDCO) through public-private partnerships to serve as hubs for research, testing, and training.

The state will also roll out a workforce development programme to train 1,000 engineering students through initiatives such as the India Semiconductor Workforce Development Programme (ISWDP), while sponsoring select candidates to premier institutions in India and abroad.

Industries Minister TRB Rajaa said the new initiatives underline the state government’s commitment to building a self-reliant semiconductor ecosystem. “With targeted subsidies and prototyping grants, we are giving fabless design firms the critical early-stage support they need to succeed. The Centres of Excellence will anchor research, foster industry-academia collaboration, and nurture the next generation of chip designers,” he said.

Industries Secretary V Arun Roy added that the various components of TNSM 2030 offer a “clear blueprint for a complete ecosystem,” combining subsidies, infrastructure, pilot fabrication facilities, and integrated skilling programmes.

The Tamil Nadu Semiconductor Mission 2030 will be built on five key pillars. These include the promotion of fabless design firms, the development of design and testing infrastructure, and the establishment of Centres of Excellence as for-profit special purpose vehicles. In addition, the mission will focus on creating semiconductor equipment manufacturing parks and setting up a small-scale production-grade fabrication facility, alongside comprehensive talent development programmes.

The mission will also focus on four strategic priorities: supporting chip design, testing, and packaging; boosting semiconductor machinery manufacturing; investing in research and innovation; and creating a globally competitive workforce.

To strengthen manufacturing infrastructure, the state is developing semiconductor equipment manufacturing parks in Sulur and Palladam in Coimbatore, each spread across 100 acres. Separately, a “School of Semiconductor” initiative will establish a small-scale production-grade fab in partnership with IIT, private players, and industry associations. The fab will function as an R&D and prototyping facility, while also enabling the upskilling of over 4,500 technicians in fabrication, testing, and packaging.

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