Tamil Nadu’s Semiconductor and Advanced Electronics Policy

January 4, 2024

The Tamil Nadu government will unveil a dedicated policy for semiconductors and advanced electronics at its January 7-8 Global Investors Meet, aiming to transition into higher value addition.

What Are Semiconductors?

Semiconductors are a class of crystalline metallc solids having electrical conductivity between that of a pure conductor and insulator.
Silicon is the most common semiconductor material used. But compounds like gallium arsenide are also deployed.

Key Properties and Applications

Semiconductors unique electrical properties enable controlling current flow, which can be modulated by external stimuli like heat, light or electric fields. This permits them to amplify signals or switch between on-off states.

Such capabilities have resulted in their widespread usage for:

Miniaturized and efficient electronic component manufacturing like diodes, transistors and integrated circuits
Optoelectronic devices including sensors, solar panels, LEDs and laser diodes
High power electrical applications

Their varied applicability stemming from adaptability to purpose has made semiconductors integral for modern computing, telecommunication, industrial, medical, aerospace/defense and consumer electronics.

Evolving Beyond Hardware Assembly

Chief Minister Stalin will launch the framework outlining attractive incentives for semiconductor and strategic electronics firms to complement existing device assemblers like Apple suppliers. The aim here is to boost critically important chip design/fabrication capabilities beyond lower-end electronics manufacturing currently dominated by Tamil Nadu.

Builds on Established Prowess

The state already assembled Apple iPhones concurrently with China last year at suppliers like Foxconn. With 3 big contract manufacturers operational, 2022 exports crossed $5.4 billion – nearly double that of second-ranked Uttar Pradesh. Attracting higher-end manufacturers leverages Tamil Nadu’s lead while creating quality local jobs. Foxconn itself is investing Rs 1,600 crore into component production.

Holistic Vision

The upcoming policy reportedly sets targets for advanced electronics contribution, facilitation schemes, and ecosystem conditions needed.

Flaunting unmatched engineering graduate numbers and electronics skill sets, the state enjoys advantages in transitioning towards integrated R&D and fabrication bases.

Wider Perspective

The intent aligns with India’s geopolitically crucial $10 billion semiconductor mission approved last month. Dovetailing state level developments to national priorities also allows optimal resource utilization.

The government is also roping global industry experts to enrich insight exchange and inspire youth towards high-technology careers.

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