Parliament Question: Support to electronics sector in Tamil Nadu

GOVERNMENT OF INDIA MINISTRY OF ELECTRONICS AND INFORMATION TECHNOLOGY RAJYA SABHA UNSTARRED QUESTION NO. 3257 TO BE ANSWERED ON: 20.03.2026 SUPPORT TO ELECTRONICS SECTOR IN TAMIL NADU 3257. DR. M. THAMBIDURAI: Will the Minister of ELECTRONICS AND INFORMATION TECHNOLOGY be pleased to state: (a) whether Government has received proposals for semiconductor, electronics manufacturing and data centre investments in Tamil Nadu during the last three years; (b) the details of incentives extended under the Production Linked Incentive (PLI) Scheme to projects in Tamil Nadu; (c) the expected employment generation from such projects in the State; and (d) the steps taken to position Tamil Nadu as a major electronics manufacturing hub in South India? ANSWER MINISTER OF STATE FOR ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI JITIN PRASADA) (a) to (d): India’s electronic manufacturing strategy is driven by the Hon’ble Prime Minister’s vision of AtmaNirbhar Bharat and Making India a global manufacturing hub. The Government adopted a structured and targeted policy for electronics manufacturing across the entire value chain including semiconductors. Various initiatives in this regard include the Production Linked Incentive (PLI) Schemes for Large Scale Electronics Manufacturing and IT Hardware, Semicon India Programme, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), Modified Special Incentive Package Scheme (M-SIPS), Electronics Manufacturing Clusters (EMC) Scheme, and Electronics Components Manufacturing Scheme (ECMS). As a result of these policies, electronics manufacturing in India has expanded significantly in the last 11 years. Table1: # 2014-15 2024-25 Remarks Production of electronics goods ~1.9 Lakh crore ~11.3 Lakh crore Increased 6 times (in ₹) Export of electronics goods (in ₹) ~0.38 Lakh crore ~3.3 Lakh crore Increased 8 timesProduction of mobile phones (in ~0.18 Lakh crore ~5.5 Lakh crore Increased 28 times ₹) Export of mobile phones in (in ₹) ~0.01 Lakh crore ~ 2 Lakh crore Increased 127 times Mobile Phone imported (units) 75% of the total 0.02% of the demand total demand Smartphones emerged as the top most category in the exported goods in Calendar Year 2025. Table2: # HS Code Item Export value (in $) 1 85171300 Smartphones 30.13 Billion 2 27101944 Automotive diesel fuel, not containing biodiesel, 16.34 Billion conforming to standard is 1460 3 71023910 Diamond (other than industrial diamond) cut or 12.47 Billion otherwise worked but not mounted or set (Source: Directorate General of Commercial Intelligence and Statistics) Semicon India Programme Semiconductors is a foundational and strategic industry. Semiconductors are used in almost every device. To promote the development of its manufacturing ecosystem in India, the Government launched Semicon India Programme in January 2022. In a short span of four years, the Government has approved 10 projects with investment commitments of about ₹1.6 lakh crore. Commercial production from one of the plants (Micron) has commenced along with pilot production underway in 3 more plants. Design Linked Incentive Scheme 24 projects have been approved for the design of semiconductor chips & SoCs, with a total project value of Rs. 900 crore. These projects cover chips relating to various critical sectors such as video surveillance, drone detection, energy metering, microprocessors, satellite communications, broadband and IoT SoCs. Chip to Startup (C2S) Programme The Government is also providing infrastructure support for chip design to eligible applicants, including access to EDA tools, IP cores, and fabrication facilities. These advanced designing tools are now available to students of 315 universities/institutes. So far, their usage has exceeded 185 lakh hours.Using the EDA tools and IPs, 146 chips designs have been taped out by 49 institutions across India out of which SCL, Mohali has successfully fabricated and packaged 94 student-designed chips. The list of beneficiaries of DLI and C2S in the state of Tamil Nadu is at Annex-I. India Semiconductor Mission 2.0 Building on the success of Semicon India Programme, India Semiconductor Mission 2.0 was announced in the Union Budget 2026-27, to produce equipment and materials, design full stack, Indian IP and fortify supply chains. Electronics Components Manufacturing Scheme (ECMS) Government launched ECMS to further deepen the supply chain ecosystem and develop robust electronics component ecosystem in the country. It aims to attract investments across key components such as Printed Circuit Boards (PCBs), passive components, electro-mechanical components, sub-assemblies, camera modules, optical transceivers, and capital goods required for electronics manufacturing. The goal is increase domestic value addition (DVA) in electronics product and ultimately increase India’s exports share in global electronic trade by integrating with the Global Value Chains (GVCs). The scheme has received overwhelming response from industry so far. Against the investment target of Rs 59,350 crores, investment commitments of Rs 1.15 lakh crores have been received. Taking cognizance of the strong industry response, in Budget 2026, the Government enhanced the budgetary outlay of the scheme from Rs 22,919 crores to Rs 40,000 crores. Till date, 46 applications have been approved across 11 states under the ECMS scheme. List of approved applicants in the state of Tamil Nadu is at Annex - II. Because of this conducive policy environment comprising of schemes such as PLI schemes for mobile manufacturing and ECMS, the production and export of smartphones in Bharat has witnessed a significant growth. Production Linked Incentive scheme: (i) Large Scale Electronics Manufacturing: The scheme aims to boost domestic manufacturing and attract investment in mobile phones value chain including electronic components and semiconductor packaging. It extends an incentive of 6% to 3% on incremental sales (over base year) of goods manufactured in India and covered under target segments to eligible companies. Status so far: Parameter Target Achieved Investment ₹7,000 crore ₹15,172 crore Production ₹8,12,550 crore ₹10,22,687 croreExports ₹4,87,530 crore ₹5,67,442 crore Employment 2,00,000 1,71,448 4 companies have been approved under the scheme in Tamil Nadu. The list of beneficiaries in the state of Tamil Nadu is at Annex-III. (ii) IT hardware: The scheme provides an average incentive of around 5% on net incremental sales of goods manufactured in India to eligible companies for a period of six years. The target segment under the scheme includes Laptops, Tablets, All-in-One PCs, Servers and USFF (Ultra Small Form Factor). As of December 2025, PLI Schemes for IT Hardware have attracted cumulative investment of Rs 856 crore, production of Rs 16,531 crore and additional employment of 4,776. 6 companies have been approved under the scheme in the State of Tamil Nadu. The list of beneficiaries in the state of Tamil Nadu is at Annex-III. The total amount disbursed till date in the PLI Schemes of MeitY is Rs 15,555 crore. ******* Annex-I List of Semiconductor Beneficiaries in the state of Tamil Nadu (i) Design Linked Incentive Scheme (a) Financial support 1. Aheesa Digital Innovations Pvt. Ltd. 2. Mindgrove Technologies Pvt. Ltd. 3. InCore Semiconductors Pvt. Ltd. 4. MBit Wireless Pvt. Ltd. (b) EDA Tool support 1. Aheesa Digital Innovations Pvt. Ltd. 2. InCore Semiconductors Pvt. Ltd. 3. ARIES BioMed Technologies Pvt. Ltd. 4. Mindgrove Technologies Pvt. Ltd. 5. Struent Semiconductors Pvt. Ltd. 6. PRSsemicon Technologies Pvt. Ltd. 7. Sicrest Semiconductors Pvt. Ltd. 8. MBit Wireless Pvt. Ltd. (ii) C2S Programme 1. Dr. Mahalingam College of Engineering and Technology, Coimbatore2. SNS College of Technology, Coimbatore 3. National Institute of Technology Tiruchirappalli 4. Indian Institute of Information Technology Tiruchirappalli 5. Anna University Regional Campus Coimbatore 6. Mohamed Sathak Engineering College, Ramanathapuram 7. Karunya Institute of Technology and Sciences, Coimbatore 8. St. Xaviers Catholic College of Engineering, Kanya Kumari 9. College of Engineering Guindy, Anna University, Chennai 10. Indian Institute of Information Technology Design and Manufacturing Kancheepuram 11. M/s Aries Biomed Technology Pvt. Ltd 12. M/s InCore Semiconductors Pvt. Ltd 13. IIT Madras 14. PSG College of Technology, Coimbatore 15. VIT (Vellore Institute of Technology), Vellore 16. Crescent Institute of Science & Technology, Chennai 17. VIT Chennai 18. Madras Institute of Technology 19. Kongu Engineering College, Perundurai, Tamil Nadu 20. SASTRA Deemed University, Tamilnadu 21. SRM Institute of Science and Technology, Kattankulathur 22. R.M.K College of Engineering and Technology, Tiruvallur 23. Kalasalingam Academy of Research & Education, Tamilnadu 24. Mohamed Sathak A J College of Engineering, Chennai 25. SSN College of Engineering, Kalavakkam 26. Easwari Engineering College, Chennai 27. Vel Tech, Chennai 28. RMK Engineering College, Kavaraipettai 29. SRM TRP Engineering College, Trichy 30. Sri Eshwar College of Engineering, Coimbatore 31. SRM Institute of Science & Technology, Tiruchirappalli 32. NIELIT Chennai 33. SRM Institute of Science & Technology, Chennai 34. Sri Sairam Engineering College, Chennai 35. Chennai Institute of Technology, Chennai 36. Thiagarajar College of Engineering, Madurai 37. J.N.N Institute of Engineering, Chennai 38. Arunachala College of Engineering For Women, TamilNadu 39. Government College of Technology, Coimbatore 40. Sri Shakthi Institute of Engineering and Technology, Coimbatore 41. P.S.R. Engineering College, Sivakasi 42. Rajalakshmi Engineering College, Thandalam, Chennai 43. Rajalakshmi Institute of Technology, Chennai 44. Sona College of Technology, Salem 45. Hindusthan College of Engineering and Technology, Coimbatore 46.K.S.Rangasamy College of Technology (Autonomous), Namakkal, Tamil Nadu 47. Government College of Engineering, Erode48. Amrita School of Engineering, Amrita Vishwa Vidyapeetham, Coimbatore 49.PSG Institute of Technology and Applied Research, Coimbatore, Tamil Nadu 50. R.M.D. Engineering College, Kavaraipettai 51. Saveetha Engineering College (Autonomous), Kancheepuram Annex-II Details of Approved Applicants under ECMS in the State of Tamil Nadu S.No. Applicant Product 1. Kaynes Circuits India Private Limited Multi-layer PCB 2. Tata Electronics Private Limited Enclosures for Mobile, IT Hardware products and related devices 3. HI-Q Electronics Private Limited Multi-layer PCB 4. Kaynes Circuits India Private Limited Laminate 5. Yuzhan Technology (India) Private Enclosures for Mobile, IT Hardware Limited products and related devices 6. Kaynes Circuits India Private Limited Camera Module Sub-Assembly 7. Motherson Electronic Components Enclosures for Mobile, IT Hardware Private Limited products and related devices 8. Zetchem Supply Chain Services Private Optical Transceiver - SFP (Small form- Limited factor pluggable) 9. ASUX Safety Components India Camera Module Sub-Assembly Private Limited 10. Kaynes Circuits India Private Limited HDI PCB 11. Ascent Circuits Pvt Ltd Multi-layer PCB Annex-III List of PLI Beneficiaries in the state of Tamil Nadu (i) PLI IT Hardware 1. HP India Sales Private Limited 2. Rising Stars Hi-Tech Private Limited 3. Dell International Services India Private Limited 4. Flextronics Technologies (India) Private Limited 5. Syrma SGS Technology Ltd. 6. Sancraft Industries Private Limited (ii) PLI LSEM 1. Foxconn Hon Hai Technology India Mega Development Private Limited 2. Rising Stars Mobile India Private Limited 3. Tata Electronics Products and Solutions Private Limited (Pegatron Technology India Private Limited) and 4. Ascent Circuits Pvt. Ltd. *****