BENGALURU: To provide the best ecosystem and incentives to semiconductor companies, the State Government is coming up with a new semiconductor policy, aiming to benefit from the Union Government's policy with a budgetary support of Rs 76,000 crore for the sector.
The Centre has been talking to the states on providing the best possible incentive and ecosystem support to the participating firms, besides the incentive to be given by the state will be over and above that from the Centre.
“We have identified 250 acres of land in Bengaluru, Mysuru and Dharwad for fabrication units and the entire ecosystem. The policy will clearly state that the unit will be located in any of the three locations,” sources privy to the developments told The New Indian Express.
"Bengaluru has over 200 design companies, best of research organisations and talent is available in the state capital. We are also looking at assembly, testing, marking and packing (ATMP), which is a big component of the semiconductor industry and also design-linked incentives. We are looking at the entire ecosystem," they said.
The details of the policy like capital subsidy and other incentives to be given to the firms are being finalised. Industries Minister Murugesh Nirani confirmed that the draft of the new policy is being prepared and it will be announced soon. "The semiconductor sector alone has the potential to generate employment for around 1 lakh people," he told The New Indian Express.
"We want to take it up in a big way as there is a lot of demand for semiconductor manufacturing," he said, adding that the industry is keen on having the facility in Bengaluru, while the government is also suggesting some of the Tier II cities. The government, however, will decide depending on the industry's demand.
The government is trying to attract investment in emerging cities that have airports as that will help decongest Bengaluru and develop facilities and generate employment in other places. Operational costs for the firms too will be much less in those cities as compared to Bengaluru.
Nirani said that the government is putting in place a system to ensure coordination between the investors and the departments by appointing nodal officers to regularly interact with them.