TN joins race, to set up CoE for semiconductor design & testing
Led by the Tamil Nadu Industrial Development Corporation (TIDCO), the project is part of the state’s Rs 500-crore Semiconductor Mission 2030 and aims to equip local firms with advanced capabilities in design, validation, and prototyping.
Representative Image (IANS)
CHENNAI: Joining the global race to emerge as the hub of semiconductor, Tamil Nadu is setting up a Centre of Excellence (CoE) for semiconductor design and testing infrastructure development.
Led by the Tamil Nadu Industrial Development Corporation (TIDCO), the project is part of the state’s Rs 500-crore Semiconductor Mission 2030 and aims to equip local firms with advanced capabilities in design, validation, and prototyping.
The proposed CoE will feature world-class facilities, including product validation laboratories, automated test equipment, system-level and safety testing units, reliability and failure testing, a design and prototype development centre, and a pilot manufacturing facility for initial production.
The centre is expected to serve as a keystone for India’s growing electronics sector, which has increasing demand for sophisticated semiconductors in electric vehicles, renewable energy, and consumer electronics.
TIDCO will contribute up to 40% of the project cost, subject to a cap of Rs 75 crore, as a grant-in-aid, and will maintain at least a 20% equity stake in the Special Purpose Vehicle (SPV) responsible for operating the centre. It has invited bids from firm that have implemented R&D or testing facilities valued at a minimum of Rs 100 crore and demonstrate strong semiconductor sector expertise, in addition to achieving an average annual turnover of Rs 50 crore over the past three years.
The centre’s revenue sources are projected to include testing services, design and prototyping, chip manufacturing, consulting, and training. TIDCO has indicated that land will be provided on a nominal lease, with the SPV responsible for its operations, marketing, and long-term sustainability.
A month ago, Industries Minister TRB Rajaa had announced the School of Semiconductor initiative in partnership with IIT-Madras. Later, he reaffirmed that the semiconductor initiatives would proceed “come what may”, and unveiling subsidies and prototyping grants for fabless design firms and new Centres of Excellence under TIDCO.
The CoE aims to reduce reliance on international testing facilities, lower manufacturing costs, and encourage start-ups and MSMEs in Tamil Nadu’s already vibrant electronics corridor. The TN Semiconductor and Advanced Electronics Policy - 2024 forecasts India’s domestic power electronics market will reach USD 5 billion by 2027.
