Tamil Nadu's Big Bet: A New Era for India's Chip Industry

In a strategic push to strengthen its footprint in the semiconductor value chain, the Tamil Nadu government has announced a comprehensive incentive package under its Semiconductor Mission 2030, with a focus on nurturing the chip design ecosystem.

Financial incentives will be extended to Tamil Nadu-based entities involved in designing integrated circuits (ICs), chipsets, and system-on-chips (SoCs). Key benefits include:

Payroll subsidies of up to Rs 5 crore per firm.

A 50% subsidy, capped at Rs 20 crore, for expenses related to design software, IP sourcing, prototyping, testing, and certification.

Government sponsorships for select candidates to pursue advanced semiconductor training at premier global institutions.

To further support the initiative, the state will establish a Centre of Excellence (CoE) for chip design, testing, and validation. The CoE will be developed by a special purpose vehicle (SPV) promoted by TIDCO, in collaboration with private or academic partners. It will offer project grants, shared infrastructure, and land at no cost to eligible ventures.

Officials noted that the scheme is designed to complement the Union government’s design-linked incentives (DLI) and is part of Tamil Nadu’s broader strategy to build a self-reliant and globally competitive semiconductor ecosystem.

News by Rahul Yelligetti.