Karnataka targets bigger share of $300 billon electronics market

Bengaluru: The Karnataka government is stepping up efforts to attract investments across the electronics and semiconductor value-chain, as India’s electronics output is projected to reach $300 billion by 2026, and the domestic semiconductor market is expected to touch $64 billion.

Addressing industry leaders at Source India 2026, Manjula, Secretary to the Government, Department of Electronics, IT, Biotechnology and Science & Technology, Government of Karnataka, said the state is focusing on scaling manufacturing alongside its strong R&D base to capture a larger share of India’s rapidly growing electronics and semiconductor market.

“Karnataka is not just participating in India’s electronics growth story — we are shaping it. With our strong R&D ecosystem, global engineering centres and a focused push on manufacturing, the state is ready to lead the next phase of electronics and semiconductor expansion,” she said.

She said Karnataka currently contributes nearly 10% of India’s industrial output and is among the leading electronics-exporting states, with exports of over $4.5 billion, ranking third in the country. It is home to around 500 R&D centres and nearly 100 chip-design centres, including Intel, AMD, Qualcomm, Samsung, GE, Texas Instruments, Lam Research and Applied Materials. Intel’s largest R&D centre outside the US and GE’s second-largest global R&D centre are both located in Bengaluru.

Outlining the state’s strategy, Manjula said Karnataka is pursuing a three-pronged approach — Liquidity, Land and Labour — to accelerate investments in electronics and semiconductors.

The state is developing specialised manufacturing clusters, including aerospace and PCB manufacturing in Mysuru, consumer electronics in Hubballi-Dharwad, and mobile component manufacturing in Chikkaballapur, besides plans for mobile-phone assembly and EV manufacturing clusters near Bengaluru.