The newly released semiconductor policy in Tamil Nadu seeks to harness the state’s talent pool in chip design research and development. The policy includes a payroll subsidy for chip design and research units, offering reimbursement percentages based on the number of Tamil Nadu residents employed. Additionally, the policy aims to contribute 40% of India’s electronics exports by 2030 and create a skilled talent pool of 200,000 individuals in the sector.
Under the policy, selected chip design entities will be eligible for payroll reimbursement of 30%, 25%, and 20% in the first three years respectively, with a cap of INR 20,000 per employee per month. Furthermore, the state government will offer up to 50% additional financial subsidy to semiconductor manufacturing projects selected by the central government’s chip subsidy plan.
Interestingly, the policy emphasizes that only advanced electronics projects committing to a unit level value addition of over 20% will be eligible for incentives. This focus on value addition aligns with the goal of growing the ecosystem of companies that best suit Tamil Nadu’s electronics value chain.
The policy is seen as a step towards addressing the key hurdle faced by design companies, which is the availability of quality talent. The payroll subsidy is expected to attract and retain skilled chip designers, enabling them to contribute to the growth of the semiconductor industry in Tamil Nadu.
Moreover, the policy also includes provisions for financial reimbursement of expenditures related to in-house research and development activities such as patents, copyright, trademarks, and more. This is another significant incentive that aims to encourage innovation and intellectual property development within the semiconductor sector.
Overall, the new semiconductor policy in Tamil Nadu is poised to create a favorable environment for chip design talent and drive the growth of the electronics industry in the state. With the right support and incentives, Tamil Nadu has the potential to establish itself as a hub for semiconductor manufacturing and innovation.
The source of the article is from the blog macholevante.com