So far electronics production worth ₹1.38 lakh crore has been manufactured by 33 companies, including Flextronics and Rising Stars Mobile (Foxconn), in Tamil Nadu. The total exports by these companies for products approved under the Ministry of Electronics and Information Technology’s (MeitY) ‘Modified Special Incentive Package Scheme (MSIPS) worth ₹57,720 crore, Minister Jitin Prasada said in a reply to a question in the Lok Sabha.

The Ministry received 33 applications between 2014 and 2022 under MSIPS in Tamil Nadu, and all have been approved, said sources.

Under MeitY’s ‘Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS),‘ seven applications were approved in Tamil Nadu. The total investment by these applicants in the State amounts to ₹6,852 crore, the minister said.

The SPECS was notified on April 1, 2020, and remained open for applicants until March 31, 2024. The scheme offers a financial incentive of 25 per cent on capital expenditure for electronic components, e-waste recycling, mechanics, micro/nano-electronic components, solar photovoltaic (SPV) polysilicon, SPV wafers and solar cells, specialised sub-assemblies and capital goods for manufacture of aforesaid goods.

As of June 30, 2024, an incremental investment of ₹9,066.96 crore had been made under the SPECS scheme, resulting in production valued at ₹19,902 crore till June 30, 2024.

Under the Production Linked Incentive (PLI) scheme for large-scale electronics manufacturing, four applicants based in Tamil Nadu have been approved.

Apple phones

Tamil Nadu has emerged as an important hub for mobile phone manufacturing. The workforce of over 43,000 in the State is engaged in the production of Apple phones alone, he said.

To boost domestic manufacturing and attract investment in the mobile phone value chain, including electronic components and semiconductor packaging, the PLI for Large Scale Electronics Manufacturing was notified on April 1, 2020.

The scheme offers an incentive of 3 per cent to 6 per cent on incremental sales (over the base year) of goods manufactured in India and covered under target segments such as mobile phones and specified electronic components, to eligible companies, for 5 years. Till June 30, 2024, incremental investment of ₹8,390 crore had been made under the PLI scheme, resulting in production valued at ₹5.14 lakh crores till June 30, the Minister said.