Centre Approves ₹1,012 Crore Electronics Manufacturing Clusters in Tamil Nadu to Strengthen India’s Electronics Ecosystem

The Central Government has approved two new Electronics Manufacturing Clusters (EMCs) in Tamil Nadu with a combined project cost of ₹1,012.02 crore, marking another significant step in India’s efforts to expand domestic electronics manufacturing and strengthen its supply chain.

Announced by Union Minister for Electronics and Information Technology Ashwini Vaishnaw in the Lok Sabha, the projects will be developed at Manallur in Tiruvallur district and Pillaipakkam in Kancheepuram district. Together, the two clusters will cover 853.6 acres and are expected to create world-class infrastructure for electronics manufacturing companies.

The Manallur Electronics Manufacturing Cluster will be developed across 474.3 acres with an investment of ₹587.47 crore, while the Pillaipakkam cluster will span 379.3 acres with a project cost of ₹424.55 crore.

Unlike greenfield industrial developments, both projects will be established within existing SIPCOT industrial estates. This approach allows manufacturers to benefit from ready infrastructure, road connectivity, utilities and proximity to Chennai’s ports and logistics network, helping reduce project implementation timelines and improve operational efficiency.

The approval comes as Tamil Nadu continues to strengthen its reputation as one of India’s fastest-growing electronics manufacturing destinations. According to government data, the state is already home to 67 electronics manufacturing units, with Kancheepuram accounting for the highest concentration, followed by Krishnagiri, Chennai, Tiruvallur and Chengalpattu.

Industry experts believe the new clusters will encourage additional domestic and international investments by providing common infrastructure, streamlined industrial facilities and improved supply chain support. The initiative is also expected to generate employment opportunities while supporting the production of electronic components and finished products for both domestic consumption and exports.

The projects complement the Centre’s broader manufacturing initiatives, including the Production Linked Incentive (PLI) Scheme, the Electronics Manufacturing Cluster Scheme and the Semicon India Programme. Together, these policies aim to reduce import dependence, enhance manufacturing competitiveness and position India as a global electronics production hub.

With the addition of the Manallur and Pillaipakkam clusters, Tamil Nadu is expected to further consolidate its position as a preferred destination for electronics manufacturing, supporting the country’s long-term vision of building a resilient and globally competitive technology manufacturing ecosystem.