K'taka logs into India's 1st semicon fab plant
ISMC announces $3-bn investment on setting up 65 nm analog semiconductor fabrication plant near Mysuru; SignsMoU with State govt; Project to generate over 1,500 direct and 10,000 indirect jobs; Vedanta, which has investment outlay of $20 billion for its semiconductor push, is in talks with Gujarat, Maharashtra and Telangana to choose a site by mid-May
image for illustrative purpose
Bengaluru: The international semiconductor consortium ISMC, a joint venture between Abu Dhabi-based Next Orbit Ventures and Israel's Tower Semiconductor,on Sunday announced an investment of Rs22,900 crore ($3 billion) investment in a 65 nm Analog Semiconductor Fabrication plant in Karnataka.The ISMC team met Karnataka Chief Minister Basavaraj Bommai at his home office, Krishna, here.
EV Ramana Reddy, Additional Chief Secretary to Government of Karnataka, Commerce and Industries, Department of Electronics Information Technology Biotechnology and Science & Technology, signed an 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."
ISMC and Indian conglomerate Vedanta Ltd already applied for $10-billion incentive plan announced by PM Narendra Modi. The Indian govt is offering incentives to encourage setting up of semiconductor and display operations in India.
According to media reports, Vedanta is in talks with Gujarat, Maharashtra and Telangana to choose a site by mid-May. It has a planned investment outlay of $20 billion for its semiconductor and display push.
"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," said Bommai.
Karnataka Science and Technology Minister CN 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, EV 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."
The official said that Tower Semiconductor is the principal technology partner and the project initially funded by Next Orbit Ventures Fund (NOVF). The consortium is one of the three applicants for the Central Government's $10 billion incentive package for semiconductor manufacturing. US chip giant Intel Corp has announced plans to acquire TowerKarnataka semiconductor. The semiconductor market in India is projected to be $63 billion (Rs4.82 lakh crore) by 2026 from the $15 bn (Rs 1.14 lakh cr) in 2020, according to the government.
