India’s state of Karnataka gets an investment of $3 billion (Rs.23,000 crore) from International Semiconductor Consortium ISMC to set up a 65 nM Analog semiconductor fabrication plant, the state government said on Sunday.
ISMC is a joint venture between Abu Dhabi-based Next Orbit Ventures and Israel’s Tower Semiconductor and is one of the three applicants for the Union Government’s $10 billion incentives for semiconductors manufacturing. The consortium has signed the agreement with the Karnataka government. Dr. E V Raman Reddy, Additional Chief Secretary in the IT department, BT and ISMC Director Ajay Jalan signed the MoU in the presence of Karnataka Chief Minister Basavaraj Bommai. ISMC is confident that this will be the country’s first and largest semiconductor unit.
CM Bommai referred to this development as a significant agreement and said this MoU will make the state a leader IT/BT and R&D. It will also generate over 1,500 direct and 10,000 indirect employment opportunities and ancillary semiconductor ecosystem industry development in the area.
The ISMC has requested 150 acres of land in Mysuru’s Kochanahalli Industrial area, said a statement issued by the office of Dr. C N Ashwath Narayan, Minister of IT-BT and Higher Education. Addressing the event, Bommai said, “Karnataka has signed this major MoU when many other states are competing to draw investments in the semiconductor fab sector. The Karnataka government understands that it is not just the concessions or incentives, it is the conducive ecosystem that is needed to draw investors.” Bommai also emphasized that the state has the best of the infrastructure and skilled human resources.
He said, “As a state, we are not just trying to bring down the entry barriers for businesses but also make it easier to exit businesses, should it be so required. With robust policies, a committed team, best-in-class infrastructure, and an ever-increasing talent pool of workers, Karnataka is on its way to becoming a premier investment destination. I invite all of you to be a part of this Growth Story.” Bommai added that it is the nation’s pride under the leadership of and vision of Prime Minister Narendra Modi “we are becoming Atmanirbhar in semiconductor Fab”.
Expressing his support, Narayan said that semiconductor production in Karnataka will provide further impetus to the economy of the state and “we are happy to support global firms to set up manufacturing facilities here”.
Reddy added, “The uptick in Indian investment in semiconductors coincides with the global demand for semiconductors amid a shortage expected to run through 2025. We have suggested an Electronics and Systems Design cluster in Mysuru as the investment destination for ISMC.”
