Tamil Nadu has approved the Semiconductor Design Promotion Scheme under its ambitious ₹500-crore Tamil Nadu Semiconductor Mission 2030, which was announced in the State Budget 2025. The initiative is aimed at building a strong fabless design ecosystem through targeted subsidies and prototyping grants, with the goal of making the State a hub for semiconductor innovation.
According to the official Government Order, payroll subsidies will be provided to companies engaged in designing integrated circuits, chipsets, system-on-chips, IP cores, and other semiconductor-related products. Firms that already have commercially deployed products will receive subsidies of 30 percent, 25 percent and 20 percent over three years, with the amount capped at ₹20,000 per employee per month. Companies that have not yet reached commercial deployment will be eligible for a 50 percent payroll subsidy for three years, up to ₹5 crore per company.
Industries Minister T.R.B. Rajaa said, “We are unfazed by major semiconductor investments being dragged to other States, despite our unmatched talent pool and mature electronics ecosystem with global players. While we continue to attract investments in manufacturing, we will focus on semiconductor design and research and development. Our Chief Minister has made it clear that nothing shall stop our ambitions in the sector.”
To strengthen the semiconductor ecosystem further, Tamil Nadu Industrial Development Corporation (TIDCO) will establish Centres of Excellence with grants of up to ₹75 crore per project. These centres will support innovation, research, and collaboration in the sector.
The State also plans to invest in skill development by training 1,000 engineering students under the India Semiconductor Workforce Development Program. This move aims to equip young talent with specialised skills, ensuring Tamil Nadu’s active contribution to shaping India’s semiconductor future.
The Semiconductor Design Promotion Scheme marks an important step in Tamil Nadu’s strategy to build a sustainable semiconductor ecosystem, with a strong focus on design, research, and talent development.
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