Tamil Nadu’s Ambitious Bid for Semiconductor and Advanced Electronics Sector Dominance
Tamil Nadu’s vision for technological ascendancy takes a giant leap with the launch of the Tamil Nadu Semiconductor and Advanced Electronics Policy 2024. The strategic intent? To vault Tamil Nadu to the pinnacle of the semiconductor and advanced electronics industry’s value chain.
Setting the Stage for Growth
Unveiled by Chief Minister MK Stalin at the Global Investors Meet, this forward-thinking policy aims to trigger a robust surge in high-value job creation, foster innovation, and accelerate technological advancements within the state.
Key Focus: Encouraging Investments and Nurturing Talent
At its core, the policy zeroes in on incentivizing strategic investments while nurturing talent through symbiotic collaborations across industry, academia, and the government.
Milestones and Objectives
The policy outlines ambitious goals, including attracting anchor investments in semiconductor and advanced electronics manufacturing. It aims to cultivate a thriving semiconductor design ecosystem by offering incentives, funding, and fostering industry-academia partnerships.
The vision is to catapult Tamil Nadu’s contribution to India’s electronics exports from the current 30% to an impressive 40% by 2030. Additionally, the policy targets the creation of a robust talent pool comprising 200,000 skilled individuals within the sector by the same timeline.
Government Support and Subsidies
Eligible units will receive substantial support from the Government of Tamil Nadu in the form of a Capital Subsidy of up to 50% of the CAPEX assistance provided by the Government of India.
The mechanism outlines a meticulous process, including the opening of escrow accounts and phased release of funds based on project milestones, ensuring a transparent and efficient subsidy distribution.
Encouraging Prototyping and Infrastructural Development
To bolster prototyping facilities within the state, eligible units stand to gain a 25% subsidy on CAPEX for establishing product testing and prototyping facilities, with a maximum ceiling of ₹1 crore.
Moreover, stamp duty exemptions for industrial land acquisitions from SIPCOT and stamp duty concessions for private land acquisitions further incentivize investment in the sector.
Structured Incentives for Future Growth
The policy extends a structured package of incentives and standard offerings to the electronics sector, facilitating new or expansion projects in Tamil Nadu from January 1, 2024. The stipulations include minimum investment and employment thresholds, encouraging substantial investments and job creation.
Tamil Nadu’s Semiconductor and Advanced Electronics Policy 2024 is a significant step towards building a tech-forward ecosystem, fostering innovation, and leading the state to the forefront of the semiconductor and advanced electronics industry.