The Tamil Nadu government has released a Government Order (GO) announcing the allocation of ₹500 crore for the implementation of the Tamil Nadu Semiconductor Initiative – 2030 project. The ambitious programme is aimed at promoting semiconductor manufacturing and strengthening the state’s presence in India’s growing microchip industry. The move comes in line with Finance Minister Thangam Thennarasu’s announcement in the 2025-26 Budget that Tamil Nadu is targeting to become a trillion-dollar economy by 2030.The project envisages the creation of a high-tech corridor across Chennai, Hosur, and Coimbatore, with key features including a semiconductor design promotion project, establishment of industrial parks, dedicated testing infrastructure, equipment approval facilities, and skill development training centres. By doing so, the government seeks not only to position Tamil Nadu as a leader in the electronics and semiconductor ecosystem but also to generate new employment opportunities for the state’s youth. Additionally, the initiative is expected to stimulate growth for micro, small, and medium enterprises (MSMEs), providing them with opportunities to integrate into the global semiconductor supply chain.
According to the financial breakup, ₹250 crore has been earmarked for the semiconductor design development project, ₹75 crore for testing infrastructure, ₹50 crore for equipment approval facilities, ₹100 crore for small-scale semiconductor chip manufacturing, and ₹25 crore for youth skill training programmes. Selected companies participating in the project will receive financial support for a period of five years. Special arrangements are also being made to provide skill training for youth in small-scale semiconductor manufacturing. With this initiative, Tamil Nadu aims to attract global players, build indigenous capabilities, and strengthen India’s vision of becoming a global hub for semiconductor manufacturing.