Tamil Nadu To Roll Out Semiconductor And Advanced Electronic Policy At Global Investors Meet

In a bid to solidify its position as the electronics export hub in India, the Tamil Nadu Government is set to introduce the State Semiconductor and Advanced Electronics Policy at its Global Investors' Meet scheduled for January 7 and 8. The policy is anticipated to place a heightened emphasis on semiconductor design, a segment with significant value.

The state government is expecting a record investment during the investors' meeting. Tamil Nadu, having nearly tripled its electronics exports in the fiscal year 2022-23, is set to further assert itself as a prominent electronics exporter in FY24, surpassing the USD 8 billion threshold, marking a 49 per cent increase from the previous year's USD 5.37 billion. This achievement comes against the backdrop of the state already contributing USD 4.8 billion, constituting 31 per cent of India's total exports.

The 'China' Factor

A crucial factor contributing to the export surge is the 'China Plus One' strategy adopted by global giants such as Apple. This strategy has led to increased contributions from contractors like Foxconn and Pegatron, as well as suppliers like Salcomp, rushing Tamil Nadu into its position as the country’s electronic hub. Notably, in the semiconductor industry, a substantial portion of the value addition, approximately 20-30 per cent, stems from design, prompting a focused approach on this aspect.

Goal of Becoming USD 1 Trillion Economy

The previous two editions of the Tamil Nadu Global Investors Meet (GIM) attracted investments of INR 2.42 trillion in proposed investments in 2015 and INR 2 trillion in 2019. The ongoing edition includes participation from approximately nine partner countries and over 30 participating countries, underscoring its critical role in achieving the state’s ambitious goal of becoming a USD 1 trillion economy by 2031.

According to a Deloitte report, to reach this 2031 target, approximately USD 598 billion in investment is likely to come from the manufacturing sector, followed by USD 430 billion in electricity, gas, water supply, etc., and USD 396 billion from agriculture.