Chennai Global Investors Meet ends: Semiconductor policy to boost job creation

Global Investors Conference concluded in Chennai with a commitment of at least 6.6 lakh crores of investment which will create employment for 26.9 lakh crores of people. The highlight of this conference is the Semiconductor Policy issued by the Government of Tamil Nadu. Will it make a difference in the job market? Read on.

Chennai (Tamil Nadu) : "The Semiconductor policy that we announced on the first day of the World Investor Conference will attract more investments in the sector and will accelerate growth," said Chief Minister M. K. Stalin on the closing day of the Conference held in Chennai. What are Semiconductors? Why is the Tamil Nadu government giving importance to this and issuing a separate policy? What impact is this going to have on the employability of the educated youth? Let us take a close look.

What is a Semiconductor?-Semiconductors are intermediate between metals that allow electricity to pass through and rubber-like materials that block the flow of electricity. Due to this unique characteristic, the demand for semiconductors increases in the design of electronic devices with low current conduction requirements. In short, from the cell phone in everyone's hand, to electric cars and airplanes, there is no device without semiconductors.

In the post-corona era, digitization has become inevitable in the world. High demand leads to new inventions and high volume production of electronic devices. Today, 20 percent of global trade is done through electronic devices.

Semiconductor manufacturing:- Tamil Nadu has always been a hub for electronics manufacturing. It is home to top class research centers of international reputation. The state's electronic equipment export value has increased to USD 5.37 billion in FY 2022-23 from USD 1.6 billion in 2020–21. This is almost 223 percent higher and Tamil Nadu is the number one exporter of electronics in India. The target of the new policy is that Tamil Nadu should meet 40 percent of India's electronics exports by 2030. Currently TN's contribution is 30 percent.

In Tamil Nadu, it has been announced that companies setting up electronic chips research centers will be given a subsidy. The state government will subsidize 30 percent of the salary paid to the TN youth in the first year, 25 percent in the 2nd year, and 20 percent in the 3rd year. A maximum salary of Rs 20,000 has been fixed.

Subsidy for manufacturing industries:- Apart from this, 50 percent subsidy has also been announced for manufacturing industries. All these results are expected to help the students opting for engineering and electronic technology related courses. Speaking at the closing ceremony of the investors conference, CM Stalin said, "All these investments are being made throughout the state to ensure steady and widespread growth. By 2030, Tamil Nadu will become a state with one trillion USD economic growth and a major contributor to the Indian economy. As a state, we are working towards a great goal."

"There is no doubt that these MoUs will be of great help in achieving this goal soon," CM Stalin said. Therefore, the government's aim is to ensure widespread development not only in big cities like Chennai but also throughout Tamil Nadu, he added.

TN Industries Minister Dr. D.R.P. Raja told ETV Bharat that investors are showing interest in all the districts as there is a good environment and skilled human resources for investors to start business. He further said that 75,000 crore rupees will be invested in Tamil Nadu in the next 10 years, especially through the Tamil Nadu Space and Defense Policy.

Kamakoti, director of IIT Madras, said that the semiconductor policy is important for India which is also the largest consumer market. India's Semiconductor Policy has already been released. He said that Tamil Nadu government's policy also has clear planning with the potential to attract more investments and job opportunities.

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