The Global Investors Conference recently concluded in Chennai with a commitment of significant investment, paving the way for job creation in Tamil Nadu. One of the highlights of the conference was the announcement of the Semiconductor Policy by the Tamil Nadu government. This move is expected to attract more investments in the semiconductor sector and accelerate economic growth in the state.
So, what exactly are semiconductors and why is the government giving them special importance? Semiconductors are materials that have intermediate conductive properties between metals and insulators. They play a crucial role in the design of electronic devices with low current conduction requirements. From cell phones to electric cars and airplanes, there is no electronic device that doesn’t rely on semiconductors.
In the post-pandemic era, digitization has become essential, leading to a surge in demand for electronic devices. Consequently, the global trade volume of electronic devices has reached 20 percent. Recognizing this trend, Tamil Nadu, with its strong electronics manufacturing base and renowned research centers, aims to capitalize on the semiconductor industry.
Tamil Nadu has witnessed a remarkable increase in its electronic equipment export value, reaching USD 5.37 billion in the fiscal year 2022-23, a significant growth of 223 percent from USD 1.6 billion in 2020-21. This establishes Tamil Nadu as the leading exporter of electronics in India. The new Semiconductor Policy targets further growth, with the aim to meet 40 percent of India’s electronics exports by 2030.
To incentivize the establishment of electronic chip research centers, the state government has announced subsidies for companies. These subsidies include a percentage of youth salaries for the first three years, with a maximum salary limit. Additionally, manufacturing industries will also benefit from a 50 percent subsidy, encouraging students to pursue engineering and electronic technology courses.
Chief Minister M. K. Stalin expressed optimism about the impact of these policies, predicting steady and widespread growth in Tamil Nadu. The government aims to transform the state into a major contributor to the Indian economy, with an economic growth target of one trillion USD by 2030. Furthermore, the government is committed to ensuring development throughout the state, not just in major cities like Chennai.
The Semiconductor Policy is poised to make a significant difference in the job market, attracting investments and creating employment opportunities in Tamil Nadu’s growing semiconductor industry. With the right support and infrastructure, the state is positioning itself as a key player in the global semiconductor market, contributing to the economic prosperity of the region and the nation as a whole.
The source of the article is from the blog radardovalemg.com