The Tamil Nadu government has announced a set of incentives under its Semiconductor Mission 2030 to strengthen the state’s role in the chip design ecosystem.

Financial support will be extended to "Tamil Nadubased entities" engaged in semiconductor design for integrated circuits (ICs), chipsets, and system-on-chips (SoCs). The package includes payroll subsidies capped at Rs five crore per firm, and a 50 percent subsidy up to Rs.20 crore for design software, intellectual property sourcing, prototyping, testing, and certification. Additionally, the state will sponsor candidates for advanced training at reputed overseas institutions.

A Centre of Excellence (CoE) for chip design, testing, and validation will be established through a special purpose vehicle promoted by TIDCO in collaboration with private or academic partners.

The CoE will provide project grants, infrastructure, and land free of cost. Officials highlighted that the scheme complements the Union government’s design-linked incentives and is aimed at building a complete semiconductor ecosystem in Tamil Nadu.