Palaniswami unveils new EHM policy, to transform TN into a global ESDM destination

Chennai, Sep 7 (UNI) Tamil Nadu Chief Minister Edappadi K Palaniswami on Monday unveiled the new Electronics Hardware Manufacturing Policy-2020, which aims to transform the State into an innovative and a globally competitive Electronics System Design and Manufacturing

(ESDM) destination.

Under the policy, all new or expansion electronic manufacturing units will be given electricity tax exemption for a period of five years from the date of commercial production on power purchased from the TANGEDCO or generated and consumed from captive


The mission of the new policy was to provide adequate infrastructure and supporting ecosystem to ESDM companies, attract global major ESDM players to invest in Tamil Nadu, incentivize home-grown start-ups in the ESDM sector both in the component and OE/product manufacturing subsectors, catalyse the growth of innovation led enterprises involved in the manufacturing of hardware products and solutions and to develop the semiconductor fabrication (FAB) industry in Tamil Nadu.

The policy has targetted to increase Tamil Nadu’s electronics industry output to USD 100 billion by 2025, contribute 25 per cent of India’s total electronic exports to the world by 2025, undertake skill training for more than 1,00,000 people (semi- skilled and skilled) by 2024 to meet the incremental human resource requirement projected by NSDC for Tamil Nadu in

Electronics and Hardware Manufacturing sector, increase the level of value addition that was done in Tamil Nadu, especially across focus sectors such as Mobile Handsets, LED Products, Fabless Chip Design, PCBs, Solar Photovoltaic Cells, Medical

Electronics, and Automotive Electronics, undertake a focused research and development program to achieve these objectives and foster an environment of research and innovation. The policy also aims to foster a conducive environment for ESDM Start-ups, especially promoting the rapid growth of innovation-led technology enterprises involved in the design, development and manufacturing of technologically advanced solutions, besides attracting at least two major FAB investments to Tamil Nadu in the next three years.

It said aligned to the National Policy of Electronics-2019, the state government would provide special support for developing core competencies in the sub sectors like Semiconductor fabrication (FAB), Assembly, Test, Marking and Packaging (ATMP), Fabless Chip Design, Medical Electronics, Automotive, Aerospace and Aviation Electronics,

Power Electronics for Mobility, Telecom/Communication Equipment, Consumer Electronics and Appliances, Strategic Electronics, Renewable Energy Electronics, Electronic Manufacturing Services (EMS), Electronic Components Manufacturing, Electronics Test and Calibration Labs and Electronics Product Design and IP registration.


Please enter your comment!
Please enter your name here