The Karnataka government said over the weekend that a joint venture between Abu Dhabi-based Next Orbit Ventures and Israel’s Tower Semiconductor, the International Semiconductor Consortium (ISMC), will invest $3 billion in the southern state to build India’s first chip manufacturing plant .
The news comes after the SemiconIndia Summit 2022 that ended on May 1, which began on April 29, was intended to serve as a springboard for India’s aspiration to become a worldwide semiconductor hub. piece Design and manufacturing ecosystem.
The latest announcement by the Karnataka state authorities implies that the government’s incentive system to turn India into a semiconductor hub is beginning to bear fruit. India’s first semiconductor manufacturing unit is estimated to create over 1,500 direct and 10,000 indirect jobs, according to a tweet by the state’s Investment Promotion Office.
US chip giant Intel recently revealed its intention to buy Tower Semiconductor.
Karnataka Chief Minister’s Office shared a tweet on May 1 in which it said: “Government of Karnataka and ISMC @BSBommai Fab Pvt Ltd today signed a Memorandum of Understanding for the construction of the country’s first Semi-conductor Fab Plant in Karnataka.”
According to the tweet, the MoU was signed in the presence of Ajay Jalan, Founder and Managing Partner, Next Orbit Ventures. Karnataka Chief Minister Basavaraj Bommai and other government officials.
“This MoU is significant amid competition among various states to attract semiconductor manufacturing units. Karnataka understands that it is not only the fiscal stimulus that matters, but also the availability of conducive ecosystem and overall ease of operation is important,” said CM Bommai.
However, the chip makers’ consortium has sought 150 acres of land in Mysore’s Kochanahalli industrial area for the plant.
ISMC and Vedanta, a domestic metal-to-energy conglomerate, have applied for India’s incentives for semiconductor and display businesses to set up facilities in the country.
Meanwhile, Vedanta reportedly said it was in “advanced” discussions with Gujarat, Maharashtra and Telangana to select a site by mid-May. It intends to invest $20 billion in its semiconductor and performance initiatives.
IT Minister Ashwini Vaishnav while addressing SemiconIndia India 2022 said that by April or May next year, India can see its first semiconductor unit.
During the conference, the minister also said: “We understand that many countries are giving incentives. But what we offer is a commitment to build and grow our talent pool by 85,000 semiconductor professionals over the next ten years, with substantial incentives.”
“These will be industry-ready professionals and we have already tied up with global institutions,” he added.
Separately, Union Finance Minister Nirmala Sitharaman, during her recent visit to the United States, sought to take advantage of Rs 76,000 crore production-linked incentives from US semiconductor companies such as AMD, Western Digital and Micron Tech to increase their investments in India. requested. (PLI) scheme for multinational chip makers.
The central government has also asked GlobalFoundries and Taiwan Semiconductor Manufacturing Company (TSMC) to expand their operations in India.
However, despite the fact that the government is yet to finalize the beneficiaries of the PLI scheme, sources in the Ministry of Electronics and IT say that the final selection of companies will be done after a thorough examination of all factors, including investment, and technology partners. and the construction roadmap.
The center will provide financial assistance up to 50% of the project cost for at least two semiconductor and two display fabs for a minimum period of six years under the Production Linked Incentive Scheme. Others, such as Compound Semiconductors and Sensor Fab, will receive a 30% tax break.
From $15 billion in 2020, India’s semiconductor The market is expected to reach $63 billion by 2026.
read all Breaking News , today’s fresh news And IPL 2022 Live Updates Here.