Overview

• The Design Promotion Scheme offers tiered payroll subsidies for Tamil Nadu–based firms, capping support at ₹20,000 per employee per month for commercially deployed products and covering 50% of payroll costs for pre-commercial companies up to ₹5 crore.
• TIDCO will establish for-profit special-purpose vehicles to run Centres of Excellence, providing grants of up to 40% of project costs (capped at ₹75 crore) and taking up to a 20% equity stake.
• Two 100-acre semiconductor equipment parks in Sulur and Palladam are under construction, while a small-scale prototyping and R&D fabrication unit with IIT and industry partners remains in development.
• The state has pledged to train 1,000 engineering students under the India Semiconductor Workforce Development Program and upskill more than 4,500 technicians in fabrication, testing and packaging.
• The government plans to negotiate concessional rates with external fabs and enforce preferential procurement of locally designed chips under state tender rules.