Government highlights electronics and AI push in Tamil Nadu

The Central Government has highlighted the rapid growth of India's electronics manufacturing sector while outlining major investments and initiatives that have strengthened Tamil Nadu's role in electronics production, semiconductor design and artificial intelligence.

In a statement submitted to the Lok Sabha, Union Minister for Electronics and Information Technology Ashwini Vaishnaw said the country's electronics ecosystem has expanded significantly over the past decade through policy reforms, production incentives and investments across the manufacturing value chain.

Electronics manufacturing records strong growth

The government said electronics production has grown from about ₹1.9 lakh crore in 2014-15 to ₹13.11 lakh crore in 2025-26, while electronics exports increased from around ₹38,000 crore to ₹4.24 lakh crore during the same period.

Mobile phone manufacturing has also expanded sharply, with production rising to ₹6.27 lakh crore and exports reaching ₹2.59 lakh crore. India now manufactures 99.2% of the mobile phones sold domestically, and the electronics manufacturing sector is estimated to support around 25 lakh jobs.

Tamil Nadu has emerged as one of the country's major electronics hubs, with manufacturing plants operating across districts including Kancheepuram, Chennai, Chengalpattu, Tiruvallur and Krishnagiri. The state has also received support for Electronics Manufacturing Clusters at Manallur and Pillapaikkam.

Semiconductor ecosystem continues to expand

The government said the Semicon India Programme has approved 12 semiconductor manufacturing projects across six states involving investments of about ₹1.64 lakh crore, with commercial production already starting at three facilities.

Although Tamil Nadu does not host one of the approved fabrication projects, several semiconductor design companies in Chennai and Coimbatore are receiving government support through the Design Linked Incentive (DLI) Scheme. Numerous engineering institutions across the state are also participating in semiconductor talent development programmes.

The recently approved Semicon 2.0 programme will broaden support across the semiconductor value chain, creating additional opportunities for states, including Tamil Nadu, to attract future investments.

AI and digital services gain momentum

The government said the IndiaAI Mission is supporting the development of indigenous large and small language models while strengthening AI research, talent development and computing infrastructure. Tamil Nadu has been approved for two Artificial Intelligence Centres of Excellence, adding to the state's growing technology ecosystem. The government also highlighted the reach of Common Services Centres (CSCs), noting that Tamil Nadu has 18,632 operational CSCs, including 12,379 in rural areas, delivering more than 800 citizen-centric digital services.

The information was shared by Union Minister Ashwini Vaishnaw in a written reply in the Lok Sabha on 22 July 2026.