Tamil Nadu Chief Minister C. Joseph Vijay has launched a dedicated semiconductor incentive scheme, offering companies additional financial support beyond central government assistance.
The state is planning to attract investment across India’s chip manufacturing supply chain.
The state launched the Tamil Nadu Semiconductor Ecosystem Scheme at the state Secretariat in Chennai to strengthen its position in advanced electronics manufacturing. It covers activities ranging from wafer fabrication and raw materials to chip assembly, testing, packaging and supply.
Also Read: TN Announces ₹175 Crore Semiconductor and Electronics Park in Kancheepuram
Two Categories of Incentives for Semiconductor Projects
The semiconductor scheme will operate under two categories. The first provides additional financial incentives to projects approved under the Centre’s Semicon India Programme 2.0 and the India Semiconductor Mission.
The second category offers customised, need-based incentives to eligible projects outside the central government’s schemes that are considered strategically important to developing Tamil Nadu’s semiconductor ecosystem.
The state designed the framework to meet the specific needs of companies setting up operations in Tamil Nadu, complementing existing central support rather than replacing it.
Also Read: India Set to Activate Four Semiconductor Plants by December, Says Ashwini Vaishnaw
Maduramangalam Semiconductor Park Adds to State’s Plans
The launch follows Vijay’s August announcement in the Tamil Nadu Assembly that the state would establish a Semiconductor and Electronics Park at Maduramangalam in Kancheepuram district.
Industries Minister S Keerthana had also announced a dedicated incentive scheme while presenting the demand for grants for 2026-27. The plan was to align state-level support with the Union government’s semiconductor incentive programme while meeting the needs of companies investing in Tamil Nadu.
The Union Cabinet approved the Semicon India Programme 2.0 on 15 July 2026 to strengthen the semiconductor value chain.
The state expects its new scheme to expand semiconductor and electronics manufacturing opportunities and reinforce Tamil Nadu’s position in advanced manufacturing. The scheme’s two-track structure lets the state support projects already covered by central programmes while also considering strategically important investments outside them.
Samarjit Kaur is a journalist and communications professional covering technology & emerging digital trends. With a focus on clarity and context, she reports on developments shaping industries and governance. When not reporting, she chooses to plug-in and relax on her playlists and plan her next bucket-list trips!
