TN Announces ₹175 Crore Semiconductor and Electronics Park in Kancheepuram

Tamil Nadu announces a ₹175 crore semiconductor park in Kancheepuram to attract ₹2,000 crore investment and create 5,000 jobs.

By Indrani Priyadarshini

on September 2, 2026

Tamil Nadu has announced plans to establish a ₹175 crore Semiconductor and Electronics Manufacturing Park in Kancheepuram district. The park will come up at Madhuramangalam and will be developed through the State Industries Promotion Corporation of Tamil Nadu (SIPCOT). The project is expected to attract investments of around ₹2,000 crore and create nearly 5,000 direct and indirect employment opportunities.

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Tamil Nadu Chief Minister C Joseph Vijay announced the project in the state Assembly under Rule 110. The park will provide infrastructure for semiconductor and electronics manufacturing units, along with research and development facilities to support new industrial projects.

R&D facilities to support semiconductor companies

A key part of the proposed park will be its research and development infrastructure. The facility is intended to support companies looking to establish new semiconductor manufacturing operations and develop technologies within the state.

The government expects the park to help bring more investment into Tamil Nadu’s semiconductor sector while strengthening the state’s position in electronics manufacturing. The project also comes at a time when India is expanding its semiconductor capabilities, with greater focus on chip manufacturing, electronics production, research and development and the wider supply chain.

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₹2,000 crore investment potential

The proposed ₹175 crore park is expected to act as a base for further private-sector investment. According to the Chief Minister, it could attract investments of up to ₹2,000 crore into the semiconductor sector.

The government expects the resulting industrial activity to generate around 5,000 direct and indirect jobs. These opportunities could extend beyond manufacturing to areas such as research, engineering, technical services and supporting industries.

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Tamil Nadu already has a strong manufacturing base and hosts several major electronics and technology companies. The new park is aimed at building on this industrial foundation and increasing the state’s share of semiconductor-related investments.

Tamil Nadu expands technology infra

The semiconductor park is one of several infrastructure projects announced by the Tamil Nadu government. The Chief Minister also announced plans for a ₹400 crore FinTech Hub in Coimbatore through the Tamil Nadu Industrial Development Corporation (TIDCO), along with a proposed multi-modal logistics hub in the Tiruchirappalli region.

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Together, the projects are aimed at strengthening industrial infrastructure, attracting investment and creating new employment opportunities across different technology and manufacturing sectors.

For the semiconductor industry, the Kancheepuram park could provide an important platform for manufacturing and R&D activity. If the planned investments materialise, the project could further strengthen Tamil Nadu’s role in India’s growing semiconductor and electronics ecosystem.

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