"Electronics Production in Tamil Nadu Hits ₹1.38 Lakh Crore, Achieved by 33 Companies"

Tamil Nadu has seen a substantial boost in its electronics manufacturing sector, with production valued at ₹1.38 lakh crore to date, achieved by 33 companies, including major players like Flextronics and Rising Stars Mobile (Foxconn). According to Minister Jitin Prasada, exports of products approved under the Ministry of Electronics and Information Technology’s (MeitY) ‘Modified Special Incentive Package Scheme (MSIPS)’ have reached ₹57,720 crore.

Since the inception of the MSIPS, which ran from 2014 to 2022, all 33 applications received in Tamil Nadu have been approved. Additionally, the 'Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS),' which began on April 1, 2020, has seen seven applications approved in the state. These applicants have collectively invested ₹6,852 crore.

As of June 30, 2024, the SPECS scheme has facilitated an incremental investment of ₹9,066.96 crore, leading to a production value of ₹19,902 crore. The SPECS scheme, open until March 31, 2024, offers a 25% financial incentive on capital expenditures related to various electronic components and technologies.

Under the Production Linked Incentive (PLI) scheme for large-scale electronics manufacturing, which also began on April 1, 2020, four Tamil Nadu-based applicants have been approved. This scheme provides incentives of 3% to 6% on incremental sales of manufactured goods and has driven an incremental investment of ₹8,390 crore by June 30, 2024. This has resulted in production valued at ₹5.14 lakh crore.

Tamil Nadu has emerged as a significant hub for mobile phone manufacturing, with over 43,000 workers dedicated to the production of Apple phones alone. The PLI scheme aims to further bolster domestic manufacturing and attract investments in the mobile phone value chain, electronic components, and semiconductor packaging.

HBL