Karnataka clears 3 semicon projects along with incentives

Bengaluru: The Karnataka government on Wednesday cleared three semiconductor projects worth around Rs 23,000 crore. Applied Materials India will set up a fab innovation center for semiconductor manufacturing (ICSM) in Bengaluru while Lam Research will set up units for research and development (R&D) as well as a silicon component manufacturing facility. Bharat Semi Systems will establish an integrated design manufacturing semiconductor unit including both a design and a fab facility in Mysuru. In total, these projects are expected to create around 3,500 jobs.

“The state government also cleared incentives for these projects which was reviewed by a subcommittee, chaired by Chief Minister Siddaramiah,” a source in the know told DH. However, DH couldn’t independently ascertain the amount of these incentives. 

The Karnataka government has been doubling down on its semiconductor ambitions and is also on the look out for companies who would make artificial intelligence (AI) chips. C2i Semiconductors being one of the companies the state is in conversation with, the source added. The objective is to not miss the bus on the emerging technologies and be a part of it. 

This announcement came alongside the approval of six investment proposals amounting to Rs 15,441.17 crore. These include both new and expansion proposals and the investments are expected to generate 5,277 jobs. 

While locations for two of the semiconductor companies have been locked, Lam Research’s location of operation is yet to be finalised. The company is scouting for a place around Whitefield in Bengaluru, to be able to attract the best of talent and ecosystem, the source said.