TN unveils semiconductor ecosystem scheme

Tamil Nadu Chief Minister Joseph Vijay launched the “Tamil Nadu Semiconductor Ecosystem Scheme.” The Scheme has been launched as a major initiative to position Tamil Nadu as a leading semiconductor and advanced electronics manufacturing hub in India and to attract new investments in the semiconductor sector.

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The Chief Minister launched the scheme on Thursday at a function organised at the Secretariat, Chennai, on behalf of the Industries, Investment Promotion and Commerce Department.

During the debate on the Demands for Grants of the Industries Department for the year 2026–2027, held on 25.08.2026, the Minister for Industries  S. Keerthana  had announced in the Legislative Assembly that a dedicated State incentive scheme would be introduced in alignment with the new semiconductor incentive scheme of the Government of India, taking into account the requirements of semiconductor companies proposing to establish their projects in Tamil Nadu.

Further, the Chief Minister had already announced in the Legislative Assembly that a “Semiconductor and Electronics Park” would be established at Maduramangalam in Kancheepuram District.

The Government of India accorded approval to the Semicon India Programme 2.0 on 15.07.2026. The Programme aims to strengthen the entire semiconductor value chain, including chip design, machinery and raw materials required for semiconductor manufacturing, wafer fabrication facilities (Fabs), ATMP/OSAT, research and development, and skill development.

In continuation of these initiatives, with a view to strengthening the semiconductor ecosystem in Tamil Nadu and attracting substantial investments in the sector, the Vijay launched the Tamil Nadu Semiconductor Ecosystem Scheme.

The Tamil Nadu Semiconductor Ecosystem Scheme is proposed to be implemented under two categories. Investment projects approved under the Government of India’s Semicon India Programme 2.0 / India Semiconductor Mission shall be provided additional incentives and support by the Government of Tamil Nadu, over and above the financial assistance extended by the Government of India.

Further, eligible investment projects which are not covered under the Government of India’s scheme, but are considered important for Tamil Nadu’s semiconductor ecosystem, shall be provided customised support and incentives by the Government of Tamil Nadu, based on their requirements.

The new Scheme has been designed to promote investments in semiconductor manufacturing, including wafer fabrication, equipment, raw materials, assembly, testing, packaging and related supply-chain sectors.

Minister Keerthana, Chief Secretary M. Saikumar, Industries Secretary S. Vijayakumar, Managing Director and Chief Executive Officer, Guidance Deepak Jacob, Executive Director, Guidance Pallavi Varma and senior officials of the Government participated in the event.

 

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