Tamil Nadu CM Vijay Launches Semiconductor Scheme With Added Incentives

A new state support framework will offer additional incentives for selected semiconductor projects and extend assistance to investments outside the Centre’s scheme.

Tamil Nadu Chief Minister C. Joseph Vijay launched the Tamil Nadu Semiconductor Ecosystem Scheme 2026 at the Secretariat in Chennai on Thursday.

The scheme aims to establish Tamil Nadu as a leading semiconductor and advanced electronics manufacturing hub in India while attracting fresh investments in the semiconductor sector.

Two categories of support

The scheme is proposed to be implemented under two categories, according to an official release.

Under the first category, the Tamil Nadu government will provide additional incentives and support over and above the financial assistance provided by the Union government.

This support will be available to investment projects approved under the Centre’s Semicon 2.0/India Semiconductor Mission scheme.

The second category covers eligible investment projects that may not fall under the Centre’s scheme but are considered important for strengthening Tamil Nadu’s semiconductor ecosystem.

For these projects, the State government will provide support and incentives, the release added.

Part of a wider semiconductor push

The Union government approved the Semicon India Programme 2.0 on July 15, 2026, with the objective of strengthening the entire semiconductor value chain.

The programme covers chip design, semiconductor manufacturing equipment and raw materials, wafer fabrication, research and development, and skill development.

Tamil Nadu’s scheme is therefore designed both to supplement financial assistance available through the Union government and to support projects that are important to the State’s wider semiconductor ecosystem.

The launch brings the State’s incentive framework into focus as Tamil Nadu seeks a larger role in semiconductor and advanced electronics manufacturing in India.

Minister for Industries S. Keerthana, Chief Secretary M. Sai Kumar, Additional Chief Secretary to the Industries, Investment Promotion and Commerce S. Vijayakumar, Managing Director and Chief Executive Officer of Guidance Tamil Nadu Deepak Jacob, and Executive Director of Guidance Tamil Nadu Pallavi Varma were present.

Source: The Hindu