Govt Highlights Electronics,
Semiconductor and AI Ecosystem Growth in Tamil Nadu under Atmanirbhar Bharat
Ø Semiconductor Talent Development Scaled
Up Across India; 315 Institutes Supported Nationwide, Including 61 in Tamil Nadu
Ø Govt’s Electronics Push Creates Nearly
25 Lakh Jobs as India Now Manufactures 99.2% of Mobile Phones Sold Domestically
·
Since
2014, the Government has promoted electronics manufacturing through FDI
reforms, tax reforms, labour reforms and Production Linked Incentive (PLI)
schemes.
·
Electronics
production increased from ₹1.9
lakh crore (2014-15) to ₹13.11 lakh crore (2025-26)—a
seven-fold rise.
·
Electronics
exports rose from ₹38,000
crore to ₹4.24 lakh crore, an eleven-fold increase.
·
Mobile
phone production expanded from ₹18,000
crore to ₹6.27 lakh crore (33-fold growth).
·
Mobile
phone exports surged from ₹1,500
crore to ₹2.59 lakh crore, a 165-fold increase.
·
India
now manufactures 99.2% of
mobile phones sold domestically, and electronics manufacturing
provides employment to nearly 25
lakh people.
·
The
Government has supported electronics manufacturing plants across Tamil Nadu,
including:
o Kancheepuram (38 plants)
o Krishnagiri (8)
o Chennai (6)
o Tiruvallur (6)
o Chengalpattu (4)
o Thoothukudi (2)
o Coimbatore, Tirunelveli and Vellore (1
each).
·
Two
major EMCs have been supported:
o Manallur EMC: 474.3 acres, project cost ₹587.47 crore.
o Pillapaikkam EMC: 379.3 acres, project cost ₹424.55 crore.
·
Launched
in January 2022
to establish semiconductor fabrication, packaging, display manufacturing and
chip design capabilities.
·
Government
has approved 12
semiconductor manufacturing projects across six states
involving investments of about ₹1.64
lakh crore.
·
Commercial
production has already begun at three
semiconductor plants.
·
Through
the Design Linked
Incentive (DLI) Scheme, the Government provides grants and
Electronic Design Automation (EDA) tools to startups and MSMEs.
·
Support
has been approved for:
o 24 semiconductor design projects.
o 105 startups/MSMEs receiving EDA tool support.
·
Seven
semiconductor design companies in Chennai and Coimbatore are receiving
Government support.
·
Talent
development programmes are being supported in 315 institutes nationwide.
·
In
Tamil Nadu, 61 engineering
institutions and universities, including IIT Madras, NIT
Tiruchirappalli, Anna University, IIITDM Kancheepuram, VIT, PSG College and
several others, are participating in semiconductor talent development
initiatives.
·
Approved
by the Union Cabinet on 15
July 2026.
·
Covers
the complete semiconductor ecosystem, including upstream supply chains.
·
Does
not exclude any segment covered under the original Semicon
India Programme and is expected to create new investment opportunities for all
states, including Tamil Nadu.
·
The
Mission aims to democratise AI technology, promote indigenous AI innovation,
generate employment and build AI infrastructure under seven strategic pillars.
·
Government
is supporting 20 sovereign
AI model proposals, comprising:
o 12 Large Language Models (LLMs)
o 8 Small Language Models (SLMs).
·
Notable
initiatives include:
o Sarvam AI's 30B and 105B parameter models.
o Gnani.AI's speech-to-speech model.
o BharatGen's multilingual foundation models.
o Avataar AI's video-generation model.
·
Government
has approved 58 Artificial
Intelligence Centres of Excellence (AI-CoEs)
across States and Union Territories.
·
Two
AI-CoEs
have been approved in Tamil Nadu.
·
Under
the Pax Sillica initiative, India and the United
States will collaborate on AI computing infrastructure, processors and research
and development.
·
CSCs
continue to expand digital service delivery across India.
·
As of 31 May 2026:
o India: 5,01,731 functional CSCs, including
3,91,160 in rural areas.
o Tamil Nadu: 18,632 CSCs, including 12,379 rural CSCs.
·
CSCs
deliver over 800
citizen-centric digital services across the country.
[ABS News Service/23.07.2026]
Inspired by the Prime Minister’s vision
of AtmaNirbhar Bharat, the Government adopted structured
and targeted policy initiatives for the development of electronics manufacturing
across the entire value chain including semiconductors.
India’s success in electronics manufacturing:
Since 2014, the Government of India has
undertaken a series of initiatives to promote electronics manufacturing in the country.
These include FDI reforms, tax reforms, labour reforms, Production Linked Incentive
schemes, etc.
As a result, India now has emerged as
one of the major electronics manufacturing ecosystems as seen below:
|
# |
2014-15 |
2025-26 |
Remarks |
|
Production
of electronics goods (₹) |
₹1.9
Lakh Cr |
₹13.11
Lakh Cr |
Increased
7 times |
|
Export of
electronics goods (₹) |
₹38
thousand Cr |
₹4.24
Lakh Cr |
Increased
11 times |
|
Production
of mobile phones (₹) |
₹18
thousand Cr |
₹6.27
Lakh Cr |
Increased
33 times |
|
Export of
mobile phones (₹) |
₹1500
Cr |
₹2.59
Lakh Cr |
Increased
165 times |
India now manufactures around 99.2% of
the total mobile phones sold in the country. Mobile phones have emerged as the single
largest exported item. Industry estimates that electronics manufacturing now provides
employment to nearly 25 Lakh people.
Electronics Manufacturing:
Prime Minister Narendra Modiji’s vision
has benefitted Tamil Nadu. Government of
India has supported the setting up of many electronics manufacturing plants in Tamil
Nadu as detailed below:
|
# |
District |
Number of plants |
|
1 |
Chengalpattu |
4 |
|
2 |
Chennai |
6 |
|
3 |
Coimbatore |
1 |
|
4 |
Kancheepuram |
38 |
|
5 |
Krishnagiri |
8 |
|
6 |
Thoothukudi |
2 |
|
7 |
Tirunelveli |
1 |
|
8 |
Tiruvallur |
6 |
|
9 |
Vellore |
1 |
Electronics Manufacturing Clusters (EMC):
Prime Minister Narendra Modi ji has encouraged
setting up manufacturing clusters in various sectors like electronics, textiles,
defence, chemicals, etc. His vision was translated
through the Electronics Manufacturing Cluster (EMC) scheme in the electronics sector.
Government has supported the following
EMCs in the state of Tamil Nadu:
EMC at Manallur – Spread over an area of 474.3 acres,
with a project cost of ₹587.47 crore.
1. EMC at Pillapaikkam
– Spread over an area of 379.3 acres, with a project cost of ₹424.55 crore.
Semicon India Programme:
The semiconductor industry is a foundational
industry. All sectors of the economy such as industrial, consumer, defence, telecommunication
and automotive etc depend on semiconductors. This sector offers transformative capabilities
by driving technological innovation, economic growth, and strategic self-reliance.
Recognising the importance of Semiconductors,
the Government launched Semicon India Programme in January
2022 for setting up of semiconductor fabs, display fabs semiconductor packaging
and also for promotion of Indian designed chips.
Under the Semicon
India Programme, the Government has approved 12 manufacturing projects spanning
across 6 states namely Andhra Pradesh, Assam, Gujarat, Punjab, Odisha and Uttar
Pradesh with total investment commitments of about ₹1.64 lakh crore. Out of
these 12 projects, commercial production has already commenced from three plants.
Semicon India programme is designed to leave
the choice of location with the investors.
Investors evaluate the location based on various factors. The government encourages distributed manufacturing. Because of this approach, semiconductor plants
are today located in six states across the country.
Semiconductor design:
Semiconductor design plays a prominent
role in defining the "architecture" of a chip to achieve a specific function
or application. Since chip design is an extremely R&D, engineering, and IP intensive
process, the Government is providing financial as well as infrastructure support
(including free access to Design tools) to Startups and MSMEs through Design Linked
Incentive (DLI) Scheme within the Semicon India Programme.
Further, Twenty-four (24) semiconductor
design projects have also been approved for financial support and 105 startups/MSMEs
for Electronic Design Automation (EDA) tool support under DLI Scheme
The Government of India has encouraged
Semiconductor design projects in Tamil Nadu. The following companies are being supported
by Government of India, as mentioned below:
|
# |
Name |
Location |
Support |
|
1 |
Aheesa Digital Innovations Pvt. Ltd. |
Chennai |
Grant and
EDA tool |
|
2 |
Mindgrove Technologies Pvt. Ltd. |
Chennai |
Grant and
EDA tool |
|
3 |
InCore Semiconductors Pvt. Ltd. |
Chennai |
Grant and
EDA tool |
|
4 |
MBit Wireless Pvt.
Ltd. |
Chennai |
Grant and
EDA tool |
|
5 |
Struent Semiconductors Pvt. Ltd. |
Chennai |
EDA tool |
|
6 |
PRSsemicon Technologies Pvt. Ltd. |
Chennai |
EDA tool |
|
7 |
Sicrest Semiconductors Pvt. Ltd. |
Coimbatore |
EDA tool |
Semiconductor talent development:
Realising the nature of this deep tech
industry, the Government of India is supporting the design talent development in
315 institutes across the country.
Government of India has supported talent
development in following universities in Tamil Nadu:
|
# |
Institute |
Location |
|
|
Dr. Mahalingam
College of Engineering and Technology, Coimbatore |
Coimbatore |
|
|
SNS College
of Technology, Coimbatore |
Coimbatore |
|
|
National
Institute of Technology Tiruchirappalli |
Tiruchirappalli |
|
|
Indian Institute
of Information Technology Tiruchirappalli |
Tiruchirappalli |
|
|
Anna University
Regional Campus Coimbatore |
Coimbatore |
|
|
Mohamed
Sathak Engineering College, Ramanathapuram |
Ramanathapuram |
|
|
Karunya
Institute of Technology and Sciences, Coimbatore |
Coimbatore |
|
|
St. Xaviers
Catholic College of Engineering, Kanya Kumari |
Kanniyakumari |
|
|
College
of Engineering Guindy, Anna University, Chennai |
Chennai |
|
|
Indian Institute
of Information Technology Design and Manufacturing Kancheepuram |
Chengalpattu |
|
|
Indian Institute
of Technology Madras |
Chennai |
|
|
PSG College
of Technology, Coimbatore |
Coimbatore |
|
|
Vellore
Institute of Technology (VIT), Vellore |
Vellore |
|
|
Crescent
Institute of Science & Technology, Chennai |
Chengalpattu |
|
|
Vellore
Institute of Technology (VIT), Chennai |
Chengalpattu |
|
|
Madras Institute
of Technology |
Chengalpattu |
|
|
Kongu Engineering College, Perundurai, Tamil Nadu |
Erode |
|
|
SASTRA Deemed
University, Tamilnadu |
Thanjavur |
|
|
SRM Institute
of Science and Technology, Kattankulathur |
Chengalpattu |
|
|
R.M.K College
of Engineering and Technology, Tiruvallur |
Tiruvallur |
|
|
Kalasalingam Academy of Research & Education,
Tamilnadu |
Virudhunagar |
|
|
Mohamed
Sathak A J College of Engineering, Chennai |
Chengalpattu |
|
|
SSN College
of Engineering, Kalavakkam |
Chengalpattu |
|
|
Easwari
Engineering College, Chennai |
Chennai |
|
|
Vel Tech,
Chennai |
Thiruvallur |
|
|
RMK Engineering
College, Kavaraipettai |
Thiruvallur |
|
|
SRM TRP
Engineering College, Trichy |
Tiruchirappalli |
|
|
Sri Eshwar
College of Engineering, Coimbatore |
Coimbatore |
|
|
SRM Institute
of Science & Technology, Tiruchirappalli |
Tiruchirappalli |
|
|
National
Institute of Electronics and Information Technology Chennai |
Chennai |
|
|
SRM Institute
of Science & Technology, Chennai |
Chennai |
|
|
Sri Sairam
Engineering College, Chennai |
Chengalpattu |
|
|
Chennai
Institute of Technology, Chennai |
Chengalpattu |
|
|
Thiagarajar College of Engineering, Madurai |
Madurai |
|
|
J.N.N Institute
of Engineering, Chennai |
Tiruvallur |
|
|
Arunachala
College of Engineering For Women, TamilNadu |
Kanniyakumari |
|
|
Government
College of Technology, Coimbatore |
Coimbatore |
|
|
Sri Shakthi
Institute of Engineering and Technology, Coimbatore |
Coimbatore |
|
|
P.S.R. Engineering
College, Sivakasi |
Virudhunagar |
|
|
Rajalakshmi
Engineering College, Thandalam, Chennai |
Kancheepuram |
|
|
Rajalakshmi
Institute of Technology, Chennai |
Chennai |
|
|
Sona College
of Technology, Salem |
Salem |
|
|
Hindusthan College of Engineering and Technology,
Coimbatore |
Coimbatore |
|
|
K.S.Rangasamy College
of Technology (Autonomous), Namakkal, Tamil Nadu |
Namakkal |
|
|
Government
College of Engineering, Erode |
Erode |
|
|
Amrita School
of Engineering, Amrita Vishwa Vidyapeetham, Coimbatore |
Coimbatore |
|
|
PSG Institute
of Technology and Applied Research, Coimbatore, Tamil Nadu |
Coimbatore |
|
|
R.M.D. Engineering
College, Kavaraipettai |
Thiruvallur |
|
|
Saveetha
Engineering College (Autonomous), Kancheepuram |
Chengalpattu |
|
|
Coimbatore
Institute of Engineering and Technology, Coimbatore |
Coimbatore |
|
|
Karpagam
Institute of Technology, Coimbatore |
Coimbatore |
|
|
Karpagam
College of Engineering (Autonomous), Coimbatore |
Coimbatore |
|
|
Sri Venkateswara
College of Engineering, Tamil Nadu |
Chengalpattu |
|
|
Vel Tech
Multi Tech Dr. Rangarajan Dr. Sakunthala Engineering College, Chennai |
Thiruvallur |
|
|
St. Joseph's
College of Engineering, ChennaI |
Chengalpattu |
|
|
Kamaraj
College of Engineering and Technology, Madurai |
Madurai |
|
|
Kumaraguru
College of Technology, Coimbatore |
Coimbatore |
|
|
Dhirajlal Gandhi College of Technology (Autonomous),
Salem |
Salem |
|
|
Velammal Institute of Technology, Thiruvallur |
Thiruvallur |
|
|
Bannari Amman Institute of Technology,
Erode, Tamil Nadu |
Erode |
|
|
KIT-Kalaignarkarunanidhi Institute of Technology, Coimbatore |
Coimbatore |
Therefore, it is clearly evident that
the Government of India has strongly supported the development of electronics manufacturing
and design ecosystem in Tamil Nadu.
Semicon 2.0, approved by Cabinet on 15.07.2026,
does not exclude any segment which was earlier covered under the Semicon India Programme. As various projects approved under
the Semicon India Programme have generated demand for
the upstream supply chain, therefore, Semicon 2.0 is designed
to cover a complete ecosystem of semiconductors. This would offer more opportunities
to all the states, including Tamilnadu, for attractive
investments under Semicon 2.0.
IndiaAI Mission:
India’s AI policy is based on Prime Minister
Narendra Modi’s vision of democratizing technology. It is aimed at creating economic
opportunities and employment for youth, while addressing risks associated with it.
India’s AI strategy builds on India’s
vibrant IT sector with annual revenue of 300 billion dollars and 60 Lakh strong
workforce. India AI Mission supports India’s AI ambitions under seven pillars including
development of AI models, applications, datasets, talent development and affordable
compute.
AI models:
The Government of India is supporting
Indian startups and institutions to develop large language models (LLMs) and Small
Language Models (SLMs). 20 indigenous sovereign model proposals have been identified
for support, comprising 12 LLMs and 8 SLMs.
Notable successes so far include:
·
Sarvam AI’s Sarvam 30 billion parameter and 105 billion parameter models
·
Gnani.AI’s speech-to-speech model
·
BharatGen’s multilingual foundation models
·
Avataar AI’s video generation model
In addition, domain-specific SLMs, including
specialized models and AI frameworks addressing healthcare, language technologies
and agentic AI systems are at various stages of development and deployment.
AI Centres of Excellence:
Government has also approved a scheme
for the establishment of 58 Artificial Intelligence Centres of Excellence (AI-CoEs) across States and Union Territories, in collaboration
with the respective State/UT Governments and industry partners.
Government of India has approved Two (2)
Artificial Intelligence Centres of Excellence (AI-CoEs)
in Tamil Nadu.
India US cooperation on AI:
AI is an important component of India-US
co-operation. Under the Pax Sillica initiative, India and the US intend to work together
to enable access to compute and processors for AI and accelerating research and
development.
Common Services Centres (CSCs) have been
set up under an initiative of the Ministry of Electronics and Information Technology
on an entrepreneurship and self-sustainable model. CSC e-Governance Services India
Limited (CSC SPV) is the implementing agency for the project. The Project CSC aims
to deliver e-services to rural citizens through CSCs in an assisted mode and to
expand the CSC network till the Gram Panchayat level. It is a PAN India project. More than 800 citizen centric services are being
delivered through these CSC across the country. As on 31.05.2026, the spread of
CSCs at National and in the State of Tamil Nadu is as follows:
|
|
Total number
of CSCs functional |
Number of
CSCs functional in Rural Areas (Gram Panchayat or village level) |
|
National
Level |
5,01,731 |
3,91,160 |
|
Tamil Nadu |
18,632 |
12,379 |
District wise list of CSCs and list of
services are available at www.csc.gov.in.
This information was
submitted by Union Minister for Electronics and Information Technology Ashwini Vaishnaw in Lok Sabha on 22.07.2026.