Tamil Nadu signs ₹5,980 crore MoUs in electronics, aerospace investments

Tamil Nadu Industries Minister T R B Rajaa on February 16 announced two major investment agreements aimed at strengthening Tamil Nadu’s position as a global hub for advanced manufacturing, spanning electronics and aerospace.

In a post on X (formally twitter), the minister said MinebeaMitsumi has signed a memorandum of understanding (MoU) with the state through Guidance Tamil Nadu to invest ₹1,980 crore in Tiruvallur district. The project, formalised in the presence of Chief Minister M K Stalin, is expected to generate around 1,400 high-end jobs.

The Japan-based firm, which operates across 28 countries, manufactures precision mechanical and electronic components for the automotive, industrial and electronics sectors. Its portfolio includes semiconductors, IGBT modules, battery management systems, motors, sensors, connectors, switches and power supplies.

Rajaa said the investment would deepen the state’s precision engineering base and further integrate it into global supply chains, reinforcing continued confidence from Japanese companies.

In a separate announcement, the minister said the state has also signed an MoU with Aequs Group for a ₹4,000 crore investment to establish what he described as India’s first fully vertically integrated aircraft engine manufacturing project.

The initiative will come up on a 250-acre site at SIPCOT in Shoolagiri, located in Krishnagiri district, and is projected to create about 7,000 high-quality jobs. The planned Aerospace and Defence Park will feature integrated facilities for manufacturing aircraft engine and gearbox components along with shared industrial infrastructure to support production and exports.

Rajaa said the project would anchor a domestic aero-engine and precision aerospace ecosystem while strengthening the state’s participation in global aerospace supply chains. He added that the investment reflects Tamil Nadu’s push for geographically distributed industrial growth, positioning Krishnagiri as a new high-technology manufacturing centre and creating opportunities for local youth and MSMEs.

The twin investments underscore the state government’s strategy of attracting high-value manufacturing across sectors while building clusters that combine infrastructure, skilled talent and export-oriented capabilities.