Chennai: In a significant move, Tamil Nadu announced its Semiconductor and Advanced Electronics Policy 2024 on January 7, offering substantial financial incentives to design, assembling, and manufacturing companies. Under this policy, the state government is set to provide up to a 50% top-up to the Centre’s capex-linked semiconductor subsidy plan, adding extra encouragement for semiconductor projects established in Tamil Nadu.
Projects selected by the Centre for semiconductor manufacturing in the state will receive additional incentives covering training personnel, stamp duty, land, and electricity concessions. Global research or design entities in chips and electronics can benefit from up to 30% payroll reimbursement for three years if they employ Tamil Nadu residents, capped at Rs 20,000 per employee per month.
The state government will reimburse 50% of the expenditure for in-house R&D related to patents, copyright, trademarks, and geographical indications registration, up to a maximum of Rs 1 crore. An interest subvention of 5% will be provided for actual term loans supporting the project.
The ‘Structured Package of Incentives for Advanced Electronics Manufacturing’ applies to new or expansion projects in the state with investments from January 1, 2024. Companies need to meet a minimum investment threshold of Rs 200 crores and create a minimum of 150 jobs for the initial Rs 200 crore investment. Additional investment should generate a minimum of 35 jobs for every Rs 50 crore invested.
Notably, TATA Electronics has expressed its commitment to invest Rs 12,082 crore in Tamil Nadu for an enclosure manufacturing and mobile phone assembly unit, projecting employment for 40,500 individuals. The state also witnessed significant commitments from other industrial giants, including JSW Energy and TVS Group, during the two-day investor summit.
At the summit, Chief Minister MK Stalin inaugurated Qualcomm’s new design centre, Apple supplier Pegatron announced a Rs 1,000 crore investment, and various MoUs were signed, reinforcing Tamil Nadu’s position as a prime investment destination.
