The Tamil Nadu government has recently unveiled the Tamil Nadu Semiconductor and Advanced Electronics Policy 2024, marking a significant step towards establishing itself as a global hub for semiconductor and electronics manufacturing. This policy aims to position Tamil Nadu at the forefront of the value chain in the semiconductor and advanced electronics industry through strategic investments, talent development, and collaboration.
To incentivize semiconductor and advanced electronics manufacturing in the state, the policy offers a wide range of financial benefits. Notably, projects selected under the Centre’s $10 billion chip subsidy plan will receive up to 50 percent additional financial incentives if they choose to establish their manufacturing operations in Tamil Nadu. These incentives cover various areas such as personnel training, stamp duty, land allocation, electricity concessions, and payroll reimbursement for employing state residents. Additionally, global research or design entities can avail up to 30 percent payroll reimbursement for three years, with a maximum value of Rs 20,000 per employee per month.
To further attract investments, the policy provides a 50 percent reimbursement for in-house research and development expenses up to Rs 1 crore, as well as a 5 percent interest subvention on term loans for project financing. However, companies must meet certain minimum investment and employment requirements to be eligible for these financial incentives. The policy mandates a minimum investment of Rs 200 crores and the creation of at least 150 jobs, with additional job creation for every subsequent Rs 50 crore investment. Furthermore, a minimum of 20 percent in-house value addition from manufacturing facilities is also required.
The announcement of this policy has already begun to attract substantial investments to Tamil Nadu. During a two-day investor meet in the state, major companies like Tata Electronics, JSW Energy, and TVS Group have pledged significant investments. For instance, Tata Electronics is set to invest Rs 12,082 crore for manufacturing in Krishnagiri District. Additionally, Qualcomm has inaugurated a new design center, and Apple supplier Pegatron has committed Rs 1,000 crore for a manufacturing unit in Chengalpettu. Other prominent players, including Godrej Consumer, Mitsubishi Electric, Ola Electric, and AP Moller-Maersk, have also announced their investments in Tamil Nadu.
With the ambitious goal of contributing to 40% of India’s electronics exports by 2030, the Tamil Nadu Semiconductor and Advanced Electronics Policy 2024 signals a promising future for the state and India’s electronics industry as a whole.
The source of the article is from the blog cheap-sound.com