Synopsis: The Centre has approved two Electronics Manufacturing Clusters (EMCs) worth ₹1,012.02 crore in Tamil Nadu at Manallur and Pillapaikkam. The projects will strengthen electronics manufacturing infrastructure and further boost the state’s role as a major manufacturing hub.
The Indian electronics manufacturing ecosystem has been evolving gradually with the Government of India’s efforts like Production Linked Incentive (PLI) Scheme, Electronics Manufacturing Cluster (EMC) Scheme and Semicon India Programme. In this regard, the Centre has given approval to two new EMCs in Tamil Nadu, which come with a project cost of ₹1,012.02 crore, thus boosting the state as an electronics manufacturing centre.
What Has the Centre Approved?
The Central Government has sanctioned two new Electronics Manufacturing Clusters (EMC) in Tamil Nadu at Manallur and Pillapaikkam with a project cost of ₹1,012.02 crore. This announcement was made by Union Minister of Electronics & IT, Ashwini Vaishnaw in the Lok Sabha on July 22, 2026.
The objective of the Electronics Manufacturing Cluster Scheme is to develop world-class infrastructure for the manufacturing of electronics, facilitate investments, improve supply chains, and provide employment opportunities.
Why Manallur and Pillapaikkam?
Both of these locations are established SIPCOT (State Industries Promotion Corporation of Tamil Nadu) industrial estates rather than greenfield sites. This will allow companies to establish units taking advantage of the infrastructure and connectivity available at both these sites. Manallur EMC Industrial Park is located in Tiruvallur District, approximately 40 kilometers away from Chennai, allowing easy access to the ports and logistics network of Chennai. Pillapaikkam EMC Industrial Park is located in Kancheepuram District, adjacent to the existing industrial infrastructure of the state.Both cluster developments, by utilizing already developed SIPCOT land instead of developing new sites, could help reduce project implementation timelines.
Why Tamil Nadu Continues to Attract Electronics Investments
Tamil Nadu has been consistently emerging as one of the most promising electronics manufacturing centers in India. As per the information released by the government, the state has already been home to 67 electronics manufacturing units.
The highest number of these units belongs to Kancheepuram with 38 units, followed by Krishnagiri (8 units), Chennai (6 units), Tiruvallur (6 units) and Chengalpattu (4 units). These two clusters will help in improving the electronics manufacturing ecosystem in the state through common infrastructure facilities for manufacturers.
India’s Electronics Industry Has Expanded Rapidly
The approval also reflects the broader transformation of India’s electronics manufacturing sector over the past decade.
| Indicator | 2014-15 | 2025-26 |
| Electronics Production | ₹1.90 lakh crore | ₹13.11 lakh crore |
| Electronics Exports | ₹38,000 crore | ₹4.24 lakh crore |
| Mobile Phone Production | ₹18,000 crore | ₹6.27 lakh crore |
| Mobile Phone Exports | ₹1,500 crore | ₹2.59 lakh crore |
The government claims that India makes 99.2% of mobile phones sold domestically, while mobile phones have become the country’s biggest export item. The electronics manufacturing industry is also said to employ almost 25 lakh people.
Semiconductors and AI Remain the Next Growth Areas
In addition to the manufacturing of electronics, there is also an expansion of the semiconductor industry in India. The Semicon India Programme has seen the approval of 12 semiconductor manufacturing projects from the Government across six states for around ₹1.64 lakh crore investments, and three facilities have already commenced commercial operations.
Although Tamil Nadu presently does not have any such project in its territory, the state has established itself as an important centre for designing semiconductors. Seven semiconductor design companies in the state are getting help from the government under the Design Linked Incentive (DLI) scheme, whereas 61 educational institutions of the state are associated with the national semiconductor manpower development program.Two centers of excellence for Artificial Intelligence (AI-CoE) have been established by the government in Tamil Nadu.
Conclusion
The approval of two Electronics Manufacturing Clusters, worth ₹1,012.02 crore, is a major step taken by India in the process of increasing domestic electronics manufacturing capability. In addition to the development of semiconductors and artificial intelligence, these projects will help in establishing Tamil Nadu as a technology and manufacturing state.
