Tamil Nadu unveils incentives for semiconductor design firms, plans Centres of Excellence

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Tamil Nadu has launched a Semiconductor Design Promotion Scheme under its Rs 500-crore Tamil Nadu Semiconductor Mission 2030 (TNSM 2030), to provide targetted subsidy and prototyping grants to fabless design firms, the state government said on August 18, along with setting up Centres of Excellence (CoEs) through TIDCO (Tamil Nadu Industrial Development Corporation Limited)-led public-private partnerships.

The state Industries Department said these measures will help Tamil Nadu emerge as a hub for design-led semiconductor innovation. “A workforce development programme will train 1,000 engineering students via the India Semiconductor Workforce Development Programme (ISWDP) and fund select candidates for higher studies in India and abroad,” a government statement said.

Industries Minister TRB Rajaa said the scheme gives fabless firms ‘critical early-stage support’ and will nurture home-grown IP. “These initiatives are about realising our larger ambition of Product Nation TN. By enabling design-led innovation, we are laying the foundation for Tamil Nadu to become a global hub for tech products,” he said.

“TNSM 2030 is anchored on five pillars: the design promotion scheme, design and testing infrastructure, CoEs, semiconductor equipment manufacturing parks, a small-scale R&D-focused fab, and skilling initiatives”, the release said.

State Industries Secretary V Arun Roy said the mission offers a ‘clear blueprint for a complete ecosystem’, combining subsidies, infrastructure investment, pilot fabrication, and integrated skilling, crucial for a semiconductor value chain.

The mission has four strategic priorities - promoting fabless chip design, supporting semiconductor machinery manufacturing, driving cutting-edge R&D, and creating a globally aligned talent pipeline.

As part of this, semiconductor equipment manufacturing parks are being developed at Sulur and Palladam in Coimbatore, each spanning 100 acres. The government has also announced a School of Semiconductor initiative, in collaboration with IIT and industry partners, to establish a small-scale production-grade fab for R&D and prototyping. The facility will also upskill over 4,500 technicians across fabrication, testing, and packaging.