BY INVITATIONRavikumar RamanujamTwenty years ago, Sriperumbudur was little more than a fast-growing industrial township on the outskirts of Chennai, known primarily for its automobile and component factories. Today, the corridor has emerged as one of India’s foremost electronics manufacturing hubs, producing everything from smartphones and TVs to refrigerators, telecom equipment and electronic components for markets across the world. Today, it is positioned to help India emerge as a global electronics manufacturing powerhouse.In FY26, Tamil Nadu was the country’s largest electronics exporter, with outbound shipments worth $20 billion, registering a robust 36% growth over FY25. The state accounted for about 42% of the nation’s electronics exports. Kancheepuram district, home to several global electronics manufacturers, contributed nearly $17 billion, making it the state’s largest exporting district. Its rise mirrors the evolution of India’s electronics manufacturing industry. While recent govt incentives accelerated investments, the foundations of Sriperumbudur’s success were laid much earlier through decades of industrial planning, infrastructure development and the steady creation of a manufacturing ecosystem.Electronics manufacturing in TN dates back to the late 1950s, but the post-liberalisation era transformed the landscape. The development of the Sriperumbudur-Oragadam industrial corridor in the late 1990s and early 2000s marked a turning point, creating the infrastructure needed to attract large multinational manufacturers.One after another, multinational companies arrived. Nokia established what was once among the world’s largest handset factories. Motorola, Dell, Samsung, Foxconn, Flex, Ericsson, Salcomp and several others also set up manufacturing bases, alongside hundreds of component suppliers and ancillary units. For instance, Samsung, which established its manufacturing facility at Sriperumbudur in 2007, now manufactures TVs, refrigerators and washing machines for both domestic and international markets. Thus, the cluster evolved from a collection of factories into an integrated manufacturing ecosystem.The concentration of global manufacturers created a powerful network effect. Every new investment generated demand for component makers, logistics providers, tooling companies, packaging firms, testing facilities and engineering service providers. Supplier capabilities strengthened, specialised skills developed locally and the region became increasingly attractive to the next wave of investors.The electronics boom has also created significant employment opportunities for women, who were once largely concentrated in traditional sectors such as textiles and leather. Today, women make up a substantial share of the workforce on electronics manufacturing shop floors.Central govt initiatives such as Make in India and the Production Linked Incentive (PLI) scheme have accelerated this momentum. But incentives deliver the greatest impact when they build upon an existing industrial base, and TN had already spent decades creating one through policy continuity, industrial infrastructure and sustained manufacturing investments.This ecosystem is now helping the state move beyond assembly-led manufacturing. Tamil Nadu is increasingly positioning itself as a destination for higher-value activities, including product design, R&D, component manufacturing, semiconductor-related operations and advanced electronics serving sectors such as automobiles, electric vehicles, aerospace, defence, renewable energy and medical devices. The state’s Semiconductor and Advanced Electronics Policy 2024 is expected to accelerate the development of local semiconductor packaging capabilities.The next phase of growth will depend as much on talent as on factories. As manufacturing embraces automation, AI and digital technologies, the availability of skilled engineers and technicians will become a critical competitive advantage. The ecosystem that has taken shape in Sriperumbudur—built over decades through consistent policymaking, world-class infrastructure, a skilled workforce and sustained private investment—may play an even larger role as India seeks to climb the global value chain.The author is a Chennai-based former business journalist with about 25 years of experience covering industry and the TN economy
