States » SouthPosted at: Oct 16 2026 4:46PM


Vijay launches semiconductor ecosystem scheme to attract investments

Chennai, Oct 16 (UNI) Chief Minister Vijay unveiled the Tamil Nadu Semiconductor Ecosystem Scheme 2026, aimed at positioning
the State as one of India's leading semiconductor and advanced electronics manufacturing hubs by attracting fresh investments and strengthening the entire semiconductor value chain.
The initiative is expected to complement the union government's semiconductor promotion programme by providing additional financial incentives and other forms of support to eligible projects in Tamil Nadu.
Theinitiative follows the Chief Minister's announcement in the Legislative Assembly on August 31 that a semiconductor and electronics manufacturing park would be established at Maduramangalam in Kancheepuram district. The government has also indicated that dedicated incentives would be introduced to meet the requirements of semiconductor companies investing in the State.
Under the scheme support would be extended under two broad categories. Under the first category, projects approved under the union government's Semicon India Programme 2.0 and the India Semiconductor Mission will be eligible for additional incentives and support from the Tamil Nadu government over and above the assistance provided by the Centre.
The second category covers eligible investment projects that may not fall under the Central government's semiconductor programme but are considered important for developing Tamil Nadu's semiconductor ecosystem. Such projects will be considered for customised State government assistance and incentives, depending on their requirements.
Through this two-pronged approach, the State aims to attract a wider range of semiconductor-related investments, including projects that could strengthen supporting industries, technological capabilities and manufacturing infrastructure.
The policy is also intended to make Tamil Nadu a more attractive destination for companies looking to establish or expand semiconductor-related operations in India.
The scheme seeks to strengthen different segments of the semiconductor industry rather than concentrate solely on chip manufacturing. These include semiconductor chip design, machinery and raw materials required for chip production, wafer fabrication facilities, assembly, testing, marking and packaging (ATMP), and outsourced semiconductor assembly and test (OSAT) operations.
Research and development, innovation and skill development are also among the areas identified for strengthening the industry's long-term capabilities.
Semiconductors are essential components in a wide range of modern products, including smartphones, computers, automobiles, telecommunications equipment, industrial machinery, medical devices and consumer electronics.
Developing a comprehensive semiconductor ecosystem requires not only manufacturing facilities but also specialised equipment suppliers, materials manufacturers, design companies, testing facilities, research institutions and a skilled workforce. By supporting these interconnected activities, Tamil Nadu hopes to create an environment in which semiconductor companies can establish operations and build stronger links with existing electronics and manufacturing industries.
On the proposed semiconductor and electronics manufacturing park in Kancheepuram district, the government said it would attract large scale investments and increase Tamil Nadu's share in the semiconductor sector. The park will be developed by the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) at an estimated cost of Rs 175 crore. The project is expected to attract investments of around Rs 2,000 crore and generate approximately 5,000 direct and indirect employment opportunities.
The proposed facility will include research and development infrastructure to support the establishment of new industries in the semiconductor sector.
The park is expected to form an important part of the State's broader efforts to attract semiconductor and electronics manufacturing companies. The newly announced incentive scheme could provide an additional policy framework for encouraging eligible companies to invest in the State.
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