# Tamil Nadu opens chip subsidies to projects without central funding

_Published Monday, October 26, 2026 at 10:18 PM EDT · Infrastructure, Policy · Latest · Tier 2 — Notable_

![Tamil Nadu opens chip subsidies to projects without central funding — Primary](https://img.digitimes.com/newsshow/20261025vl200_files/2_2b.jpg)

Tamil Nadu has introduced a semiconductor subsidy scheme that lets eligible projects receive state support without funding from India's Semicon 2.0 programme, DIGITIMES reported. Its previous manufacturing incentives depended on central approval and financial assistance.

The new scheme covers projects that have not applied for central support or were not selected. It offers fixed capital subsidies of 15 to 25% of eligible fixed assets, depending on category, and turnover-linked subsidies of up to 2% annually for five years. Eligible activities include semiconductor materials, testing, equipment research and component manufacturing. Fab Economics CEO Danish Faruqui warned that competition among states could encourage companies to seek increasingly costly concessions.

## Sources

- [DIGITIMES](https://www.digitimes.com/news/a20261025VL200/india-semiconductors-incentives-investment-packaging.html)

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Canonical: https://techandbusiness.org/newswire/nqg4EHj_Osws0AQiVzsUUG
Published: 2026-10-27T02:18:41.181Z
Story chronology: 2026-10-27T01:55:21.000Z
Retrieved: 2026-10-27T04:32:27.007Z
Publisher: Tech & Business (techandbusiness.org)