Similarly, Tamil Nadu’s Semiconductor and Advanced Electronics Policy 2024 is drafted with a delicate balance in incentives between manufacturing and chip design to attract global players. Companies shortlisted under India’s $10-billion chip incentive scheme are eligible for subsidies on capital expenditure, payroll, and product testing. The policy has a unique payroll reimbursement scheme for chip design startups, aimed at helping generate high-quality employment.

While experts see this as an encouraging development given the academic strengths that Tamil Nadu has accrued through institutions like the IIT-Madras, they underline the need for more prototyping and testing facilities if the state is to realize its aspirations in semiconductors.

The broader policy vision would be to establish a self-sustaining ecosystem for semiconductor design and manufacturing, reducing the state’s import burden and positioning the latter to drive India’s push to take its position as a global semiconductor hub. In fact, with its long history of being an automobile powerhouse, complemented by future-facing industries like IT Hardware, Tamil Nadu is all set to become one of the most crucial players in achieving India’s semiconductor dreams-valued at over $150 billion by 2030.