Building on its position as the frontrunner in India’s electronics and semiconductor landscape, Tamil Nadu has sanctioned the Semiconductor Design Promotion Scheme under its ₹500-crore Tamil Nadu Semiconductor Mission 2030 (TNSM 2030). Announced in the Tamil Nadu Budget 2025, the scheme is aimed at turbocharging the State’s fabless design ecosystem by offering targeted subsidies and prototyping grants, positioning the State as the future nerve centre of chip innovation.
According to a Government Order, financial incentives and facilitation support will be extended to Tamil Nadu-based entities engaged in semiconductor design for Integrated Circuits (ICs), chipsets, system on chips (SoCs), IP cores, and semiconductor-linked design. For instance, for firms whose products are commercially deployed, a payroll subsidy will be offered for Tamil Nadu residents. It will be 30% in the initial year, 25% in the second year, and 20% in the third year. This subsidy will be capped at ₹20,000 per employee per month.
