CHENNAI: The Tamil Nadu Industrial Development Corporation (TIDCO) has invited proposals to establish a Centre of Excellence (CoE) for semiconductor design and testing infrastructure development in the State.
The proposed CoE is aimed at positioning Tamil Nadu as a global hub for semiconductor innovation, product development and high-value manufacturing, in line with the State's Semiconductor and Advanced Electronics Policy 2024.
With India's power electronics market projected to touch nearly $5 billion by 2027, driven by electric vehicles, renewable energy and consumer electronics, the initiative seeks to address the growing need for advanced testing, validation and certification facilities within the country.
According to the RFP issued by TIDCO, the CoE will be established as a for-profit Special Purpose Vehicle (SPV) through a joint venture between TIDCO and a selected private partner.
The facility is expected to support semiconductor design, prototyping, testing and R&D, with indicative components including product testing and certification labs, automated test equipment, system-level and EMI/EMC testing, reliability and safety testing, design and prototype development centres, and skill development facilities.
TIDCO has offered grant-in-aid support of up to 40 per cent of the project cost, capped at Rs 75 crore, with funds to be released in phases based on verified milestones. Irrespective of the grant size, TIDCO will hold a minimum 20 per cent equity stake in the SPV, ensuring strategic oversight and governance.
Eligible proposers include companies, LLPs, associations or consortia with proven experience in establishing large-scale R&D or innovation facilities, a minimum average annual turnover of Rs 50 crore over the last three years, and demonstrated expertise in the semiconductor sector. The total project cost must be at least Rs 100 crore, excluding land.
TIDCO will facilitate land allocation on a nominal rental basis, subject to availability, while also extending policy-level support. Proposals must be submitted by January 28, 2026.
Officials said the initiative is expected to boost indigenous semiconductor capabilities, support MSMEs and startups, generate high-quality employment, and significantly reduce India's dependence on overseas testing and validation facilities.