BENGALURU : Amid intense competition among various states to attract semiconductor fabrication units, the Karnataka government on Sunday signed a Memorandum of Understanding (MoU) with Israel-based ISMC Analog Fab Pvt Ltd for setting up such a plant in the state with an investment of Rs 22,900 crore ($3 billion).
The company will implement the project fully over the next seven years and the facility is expected to generate employment opportunities for 1,500 people. The MoU was signed by Additional Chief Secretary, IT/BT Department, Dr EV Ramana Reddy, and ISMC Director Ajay Jalan in the presence of Chief Minister Basavaraj Bommai.
“This MoU is significant and Karnataka understands that it’s not just fiscal incentives that matter, but also
the availability of a conducive ecosystem and overall ease in operations,” Bommai said. “The MoU with ISMC would make the state a place to look forward to in semiconductor technology. It will help turn challenges in the sector into opportunities and provide a forum for technology and cultural exchange between Israel and India,” he added.
15 MoUs signed in meet
Karnataka IT/BT Minister Dr CN Ashwath Narayan said semiconductor production in Karnataka will provide further impetus to the state’s economy. “The uptick in investments in India 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,” said Ramana Reddy. ISMC has requested 150 acres of land in Mysuru’s Kochanahalli Industrial Area. As many as 15 MoUs were signed with various companies and startups across three days at the SemiCon India conference in Bengaluru.
The meeting, according to Union MoS for Electronics and Information Technology, Rajeev Chandrasekhar, is to give a message to all stakeholders that important components of manufacturing, design, innovation and talent are able to link up to real-life applications and products.