May 2, 2022
2 mins read

ISMC to set up $3bn Semiconductor Fab Investment in Karnataka

The ISMC announced an investment of Rs 22,900 crore ($3 billion) investment in a 65 nm Analog Semiconductor Fabrication plant in Karnataka…reports Asian Lite News

The ISMC team met Karnataka Chief Minister Basavaraj Bommai at his home office, Krishna, on Sunday.

E.V. Ramana Reddy, Additional Chief Secretary to Government of Karnataka, Commerce and Industries, Department of Electronics Information Technology Biotechnology and Science & Technology signed the MoU on behalf of the state government, with Ajay Jalan, director of ISMC.

The ISMC has requested 150 acres of land in Mysuru’s Kochanahalli Industrial area. This will be one of India’s first and largest semiconductor fabrication units under the Central Government’s Indian Semiconductor Mission upon project approval by the Government of India.

The project is expected to generate more than 1,500 direct and 10,000 indirect employment opportunities and ancillary semiconductor ecosystem industry development in the area with significant multiplier effects.

Speaking on the occasion, Bommai said: “This MoU is a significant agreement amid the competition among various states to attract semiconductor fabs. Karnataka understands that it is not just the fiscal incentives that matter but the availability of a conducive eco-system and overall ease in operations are also important.

“We have one of the best infrastructures in the country and an abundant skilled talent pool. 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 become a premier investment destination. I invite all of you to be a part of this Growth Story.”

“It is the nation’s pride under the leadership of and vision of Prime Minister Narendra Modi we are becoming Atmanirbhar in semiconductors Fab,” he said.

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Karnataka Science and Technology Minister C.N. Ashwath Narayan also expressed his support, saying: “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.”

Signing the MoU, E.V. Ramana Reddy said: “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.”

Commissioner for Industrial Development, Gunjan Krishna, said: “The present geopolitical circumstances necessitate that India develops the ecosystem for the semiconductor manufacturing in the country and Karnataka is well poised to take advantage of that because of its robust ecosystem in the electronic chip design industry. The manufacturing facilities will only add to the growth of the sector.”

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