CM Vijay launched the Tamil Nadu Semiconductor Ecosystem Scheme 2026 at the Secretariat, offering up to 25% capital support for chip fabs and packaging plants, with job quotas for Tamil Nadu residents.
CM Vijay launched the Tamil Nadu Semiconductor Ecosystem Scheme 2026 at the Secretariat, offering up to 25% capital support for chip fabs and packaging plants, with job quotas for Tamil Nadu residents.
Chief Minister C. Joseph Vijay launched the Tamil Nadu Semiconductor Ecosystem Scheme 2026 at the Secretariat in Chennai on Thursday, October 15, 2026, to draw investment into chip manufacturing, packaging, equipment, materials and testing.
On August 31, 2026, the Chief Minister announced in the Assembly, under Rule 110, a Semiconductor and Electronics Park at Madhuramangalam in Kanchipuram district — a ₹175 crore SIPCOT park for chip-making units and R&D facilities that he said would create about 5,000 direct and indirect jobs. During the 2026–27 Industries demand for grants, the government promised a state scheme to go alongside the Union government’s Semicon India Programme 2.0, which the Centre approved on July 15, 2026.
State support is given on top of the Centre’s assistance:
| Project type | State support |
|---|---|
| 300-mm silicon wafer fabrication (Centre gives 40%) | 25% |
| Advanced packaging | 25% |
| Legacy packaging | 20% |
| Semiconductor-grade materials, testing and characterisation, equipment R&D | 15% |
| Making, assembling or refurbishing equipment and components | 15% (with conditions) |
Projects that did not apply under Semicon 2.0, or applied and were not selected, can still get state help if they are important for Tamil Nadu’s chip ecosystem:
Minimum investment ranges from ₹50 crore for certain materials and packaging products to ₹500 crore for advanced packaging. Proposals must reach Guidance Tamil Nadu, the state’s investment promotion agency, by September 30, 2027.
Industries Minister S. Keerthana, Chief Secretary Sai Kumar, Additional Chief Secretary (Industries) Vijayakumar, Guidance MD and CEO Deepak Jacob and Executive Director Pallavi Verma were present.
Chip plants decide where the electronics industry of the next decade will be built. By adding up to 25% on top of the Centre’s support, and by asking companies to hire locally, Tamil Nadu is competing with other states for these projects while making sure the jobs reach its own young engineers. The scheme came on the same day a ₹1,940 crore data centre opened in Chennai.
Semiconductors Industries Guidance Tamil Nadu Semicon India 2.0 Jobs Day 159