Tamil Nadu announces electronics and hardware policy

After being the first state to announce the EV policy in the country, the Tamil Nadu government has announced a new electronics and hardware manufacturing policy, today. With this new policy, they aim to increase the State's electronics industry output to $100 billion by 2025. 

With a vision to  transform Tamil Nadu into an innovative and a globally competitive Electronics System Design and Manufacturing (ESDM) destination, the State hopes to contribute 25 percent of India’s total electronic exports to the world by 2025.

The government of Tamil Nadu says it will provide special support for developing core competencies in the following sub sectors like automotive, aerospace and aviation electronics, power electronics for mobility, renewable energy electronics; semiconductor fabrication; assembly, test, marking and packaging (ATMP) fabless chip design; medical electronics and more. 

Some of the other important objectives include: 

- To undertake skill training for more than 1,00,000 people (semi-skilled and skilled) by 2024 to meet the incremental human resource requirement projected by NSDC for Tamil Nadu in Electronics and Hardware Manufacturing sector, 

- Increase the level of value addition that is done in Tamil Nadu, especially across focus sectors such as Mobile Handsets, LED Products, Fabless Chip Design, PCBs, Solar Photovoltaic Cells, Medical Electronics, and Automotive Electronics

- To undertake a focused research and development program to achieve the above objectives, and foster an environment of research and innovation

- To attract at least two major FAB investments to Tamil Nadu in the next three year 

The policy also mentions the new incentives that are offered by the State government will be in addition to what the Central government is offering. There will also be a special package of incentives for ESDM units in the MSME. The government has also announced stamp duty exemption, exemption of electricity tax, environmental protection infrastructure, subsidy for intellectual capital among others. 

By 2023, the state is looking to promote electronic manufacturing cluster, and have proposed some clusters including greenfield EMC in Hosur, greenfield EMCs in Chennai/Tiruvallur/Kancheepuram region; brownfield EMCs in Sriperumbudur and Oragadam, ELCINA industrial park as brownfield EMC in Coimbatore region.