Archive · 18 Aug 2025
Tamil Nadu Launches Chip Design Scheme for Fabless Firms
Tamil Nadu is launching a plan to boost its chip design industry.
They will give money and other help to companies that design computer chips but don't make them.
This is part of a bigger plan to make Tamil Nadu a center for semiconductor work by 2030.
The state will provide financial assistance, including payroll subsidies and grants, to encourage companies to start and grow in the area.
They will also support research, train workers, and help build facilities for chip design and testing to grow the semiconductor sector.
The goal is to create new jobs and promote innovation.
Tamil Nadu introduces the Semiconductor Design Promotion Scheme to incentivize fabless chip design firms.
The scheme is part of the ₹500-crore Tamil Nadu Semiconductor Mission 2030.
Eligible firms with deployed products get payroll subsidies of 30%, 25%, and 20% in the first three years, up to ₹20,000 per employee monthly.
Firms with products not yet deployed can receive a 50% payroll subsidy for three years, capped at ₹5 crore.
The mission includes establishing Centers of Excellence, workforce development programs, and support for chip fabrication.
- Who
- The Tamil Nadu government.
- What
- Tamil Nadu launched the Semiconductor Design Promotion Scheme offering incentives for fabless chip design firms.
- When
- Announced on August 18, 2025, as part of the Tamil Nadu Semiconductor Mission 2030.
- Where
- Tamil Nadu
- Why
- To boost the semiconductor design ecosystem, create jobs, and retain IP in India.
- Scheme Name
- Semiconductor Design Promotion Scheme
- Mission
- Tamil Nadu Semiconductor Mission 2030
- Mission Budget
- ₹500 crore
- Payroll Subsidy (Deployed products)
- 30%, 25%, 20% in years 1-3 (capped at ₹20,000/employee/month)
- Payroll Subsidy (Not yet deployed)
- 50% for 3 years (capped at ₹5 crore/firm)
- Design Software Subsidy (Not yet deployed)
- 50% (capped at ₹20 crore)
- Focus
- Fabless chip design, testing, packaging, workforce development