In a bold move that strengthens its leadership in electronics manufacturing, the Tamil Nadu government launched the Tamil Nadu Electronics Components Manufacturing Scheme on Wednesday. This pioneering initiative positions the southern state as the first in India to introduce a state-level matching grant scheme tailored specifically for the electronics components sector. The scheme is expected to attract ₹30,000 crore in investments and create over 60,000 high-value jobs, building on the state’s recent export success and manufacturing growth.
With this announcement, Tamil Nadu sends a clear and powerful message to global and domestic investors—it intends to lead India’s electronics revolution not just through ambition, but through policy and execution.
Electronics Manufacturing in Tamil Nadu: A Rapid Rise
Tamil Nadu has already established itself as a national leader in electronics exports. In just four years, the state’s electronics exports surged from $1.66 billion in FY21 to over $14.6 billion in FY25. The state now accounts for 41.23% of India’s total electronics exports, making it the country’s largest electronics export base.
The growth stems from Tamil Nadu’s robust infrastructure, proactive industrial policies, and strong electronics manufacturing clusters around Chennai, Sriperumbudur, and Hosur. The state has attracted top global firms like Foxconn, Pegatron, Samsung, and Dell, which have established large-scale operations in the region.
However, until now, much of the focus remained on assembly-level manufacturing. The new scheme seeks to push Tamil Nadu’s electronics sector up the value chain by supporting components manufacturing, an area that India still imports heavily.
A Scheme with Strategic Depth
Chief Minister M. K. Stalin unveiled the scheme on Wednesday, signaling the government’s strong commitment to making Tamil Nadu a global electronics manufacturing hub. The state will provide matching financial incentives to companies approved under the Union Government’s recently launched Electronics Components Manufacturing Scheme. This includes capital subsidies, infrastructure support, and facilitation of clearances.
By matching Union-level incentives, Tamil Nadu ensures that investors receive twice the support—increasing the financial viability of projects and reducing the risk for investors. This dual-layer incentive structure helps Tamil Nadu compete with other Asian manufacturing powerhouses such as Vietnam, Taiwan, and Malaysia.
Speaking at the launch, Industries Minister TRB Rajaa emphasized the intent behind the initiative. “We are proud to announce India’s first state-level matching-grant scheme for electronics. This policy reflects our seriousness about building deep industrial capabilities. Tamil Nadu is not just keeping up with India’s electronics story—we are setting the pace.”
Aligning with Broader Policy Goals
This latest scheme supports the Tamil Nadu government’s larger vision outlined in the Tamil Nadu Semiconductor and Advanced Electronics Policy (2024). The policy targets $100 billion in electronics exports and seeks to make Tamil Nadu a global destination for semiconductors, advanced electronics, and deep-tech manufacturing.
Through this initiative, the government aims to attract firms manufacturing:
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High-Density Interconnect (HDI) boards
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Modified Semi-Additive Process (MSAP) boards
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Display assemblies
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Camera modules
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Lithium-ion battery cells
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Surface-mount device (SMD) passive components
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Capital goods and manufacturing equipment
These sub-segments represent high-value areas within the global electronics supply chain. By building capabilities here, Tamil Nadu plans to reduce import dependence, create technical jobs, and position itself in the global manufacturing race.
Predictability, Scalability, and Deep Integration
The government structured the new scheme to offer predictability and scalability for investors. Companies will receive support across the lifecycle of their project—from land allocation and environmental approvals to workforce training and global market facilitation.
The scheme provides incentives for both greenfield projects and brownfield expansions, ensuring that existing manufacturers can scale up while new players find the ecosystem ready for investment. Importantly, the scheme covers the entire supply chain, including:
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Bare components
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Sub-assemblies
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Capital equipment
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Support infrastructure
Rajaa added, “By offering a matching grant, we are not just incentivizing investment—we are building deep linkages across the value chain. This approach enables Tamil Nadu to embed itself more firmly in global electronics networks.”
Focus on Employment and Skill Development
With a projected creation of over 60,000 jobs, the scheme also tackles employment generation in high-tech sectors. These roles include technicians, engineers, R&D professionals, and quality control experts—ensuring that the youth of Tamil Nadu gain access to modern, high-paying jobs.
The government will coordinate with Skill Development Missions and technical institutes to align training with the needs of component manufacturers. This integration ensures a ready supply of industry-grade talent, reducing time-to-market for new entrants and lowering training costs.
Investors Show Growing Interest
The policy has already drawn attention from global players. Several firms in Taiwan, South Korea, Germany, and Japan have expressed early interest in evaluating Tamil Nadu for setting up component manufacturing plants. These include companies involved in printed circuit boards (PCBs), chip packaging, and smart device assemblies.
Domestic electronics and automotive suppliers have also welcomed the move. Companies based in Pune, Bengaluru, and Noida are exploring Tamil Nadu as a second base, citing improved logistics, government responsiveness, and export infrastructure.
The Ennore and Kattupalli ports, proximity to Chennai international airport, and dedicated industrial corridors provide significant logistical advantages for export-oriented units.
Political Will Backed by Policy
What sets this scheme apart is the alignment of political vision with execution-focused policy design. The Chief Minister’s emphasis on manufacturing-led growth and Rajaa’s hands-on approach with investors have created a rare combination of vision, clarity, and action.
“We are putting skin in the game,” Rajaa said. “This scheme proves that Tamil Nadu does not wait for the future—it builds it. With our ecosystem, policy depth, and investor focus, we aim to become the global benchmark in electronics manufacturing.”
Conclusion: A Blueprint for Other States
Tamil Nadu’s launch of the Electronics Components Manufacturing Scheme marks a watershed moment in India’s industrial journey. As the first state to match Union-level incentives, it sets a precedent for others to follow. More importantly, it demonstrates a proactive approach to industrial development that combines export ambitions, job creation, and technological capability.
By moving up the electronics value chain and anchoring component manufacturing within its borders, Tamil Nadu lays the groundwork for sustainable, inclusive, and globally competitive growth. With ₹30,000 crore in targeted investment and a 60,000-strong skilled workforce on the horizon, the state isn’t just reacting to global trends—it’s shaping them.
