TN clears design scheme, launches COEs under semiconductor mission

The Tamil Nadu government has sanctioned the Semiconductor Design Promotion Scheme offering targeted subsidies and prototyping grants to fabless design firms.

 

This is part of the ₹500-crore Tamil Nadu Semiconductor Mission 2030 (TNSM) announced during the state Budget 2025.

 

Under the scheme, the government has also launched Centres of Excellence (CoE) under Tamilnadu Industrial Development Corporation Limited (TIDCO) through public-private partnerships. These centres will anchor research, testing and training, helping the state emerge as a major hub for design-led innovation in the semiconductor sector.

 

The state will also roll out a workforce development programme to train 1,000 engineering students through top-tier platforms such as the India Semiconductor Workforce Development Programme (ISWDP), while sponsoring select candidates to premier institutions in India and abroad. 

 

“Introducing the Semiconductor Design Promotion Scheme and launching Centres Of Excellence through public-private partnerships are yet another testament to our unwavering commitment to building a self-reliant semiconductor ecosystem in the state. With targeted subsidies and prototyping grants, we are giving fabless design firms the critical early-stage support they need to succeed,” said T R B Rajaa, state industries minister.

 

“The Centres of Excellence will anchor cutting-edge research, foster collaboration between industry and academia, and nurture the next generation of chip designers. These initiatives are also about realising our larger ambition of ‘Product Nation TN’. By supporting design-led innovation and enabling home-grown IP, we are laying the foundation for Tamil Nadu to become a global hub for tech products and solutions,” Rajaa added.

 

TNSM 2030 is driven by the principles of self-reliance, sustainability, and inclusive development. It aims to catalyse investment, build skilled talent, create world-class infrastructure, and strengthen collaboration between industry, academia, and the government. 

 

The mission will be built on five pillars- semiconductor design promotion scheme, design and testing infrastructure development, Centres of Excellence to be set up as for-profit special purpose vehicles in partnership with academia or industry, semiconductor equipment manufacturing parks, small-scale production-grade fab and skilling and talent development.

 

“The various components of the Tamil Nadu Semiconductor Mission 2030 offer a clear blueprint for a complete ecosystem. By combining subsidies for design firms, co-investments infrastructure and parks, enabling a pilot fabrication facility and an integrated skilling programme, we are creating a self-sustaining semiconductor value chain that will draw investment, create jobs and foster innovation across Tamil Nadu,” said V Arun Roy, Tamil Nadu industries secretary.

 

TNSM 2030 will focus on four strategic priorities to build a future-ready ecosystem. First, it will promote fabless companies engaged in chip design, testing, and packaging. Second, it will support the development of semiconductor machinery manufacturing. Third, the mission will invest in cutting-edge research and innovation to drive breakthroughs and position the state as a hub for semiconductor research and development (R&D). Finally, it will focus on creating a skilled workforce aligned with global and domestic industry needs, ensuring a talent pipeline that powe₹long-term growth.

 

The state is already developing semiconductor equipment manufacturing parks in Sulur and Palladam in Coimbatore, each spread across 100 acres, as announced earlier. These parks are intended to promote the development of advanced machinery and tools essential for the semiconductor sector. Recently, the government had announced the “School of Semiconductor” initiative to enable the setting up of a small-scale production-grade fab in partnership with IIT, private playe₹and industry associations. The fab will serve as an R&D and prototyping facility. At this facility, over 4,500 technicians will be upskilled across fabrication, testing, and packaging functions.