Home / News / India /  Karnataka inks pact with chip consortium ISMC to set up 22,900 cr semiconductor plant
Back

Israel-based ISMC Analog Fab Private Ltd will invest 22,900 crore in Karnataka to set up a chip-making plant, the state government said on Sunday.

The international semiconductor consortium ISMC is a joint venture between Abu Dhabi-based Next Orbit Ventures and Israel's Tower Semiconductor. US chip giant Intel Corp has announced plans to acquire TowerKarnataka semiconductor.

India’s first semiconductor fabrication plant is expected to generate more than 1,500 direct jobs and 10,000 indirect jobs, the state's investment promotion division said in a tweet.

The company will implement the project over a period of seven years.

Additional Chief Secretary in the department of IT, BT Dr E V Ramana Reddy and Director of ISMC Ajay Jalan signed an memorandum of understanding in the presence of Chief Minister Basavaraj Bommai.

Welcoming the deal, the CM said, "This MoU is a significant agreement amid the competition among various states to attract semiconductor fabs. Karnataka understands that it's not just the fiscal incentives that matter but availability of conducive ecosystem and overall ease in operations are also important."

Underlining that Karnataka has one of the best infrastructures in the country and an abundant skilled talent pool, Bommai said his government is not only 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, committed team, best in class infrastructure and ever-increasing talent pool of workers, Karnataka is on its way to become premier investment destination. I invite all of you to be a part of this growth story," he said.

ISMC and Indian conglomerate Vedanta Ltd have applied for Prime Minister Narendra Modi's $10 billion incentive plan to push companies to set up semiconductor and display operations in India, the government's next big bet on electronics manufacturing.

Vedanta told Reuters it was in "advanced talks" with Gujarat and Maharashtra in west India and Telangana in the south to choose a site by mid-May. It has a planned investment outlay of $20 billion for its semiconductor and display push.

PM Modi and his IT ministers outlined plans on Friday for investment incentives in the sector, saying they want India to become a key player in a global chip market dominated by manufacturers in Taiwan and a few other countries.

India's semiconductor market is forecast to grow to $63 billion by 2026 from $15 billion in 2020, the government says.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less

Recommended For You

Trending Stocks

×
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout