Consortium led by ISMC will make a total investment of Rs 22,900 Crore
It will create employment opportunities for more than 2000
Bengaluru, NFAPost: Taking a huge stride in its mission to emerge as a front runner in the semiconductor and IT hardware sector in the country, Karnataka signed an MoU with Israel-based ISMC Analog Fab Private Limited for setting up a Semiconductor Fab plant in the State with an investment of Rs22,900cr($3 Billion) in the presence of Chief Minister Basavaraj Bommai.
The company is set to fully implement the project over a period of the next seven years with employment potential for 1500 persons. Additional Chief Secretary in the department of IT, BT Dr EV Ramana Reddy on part of Karnataka and Director of ISMC Ajay Jalan signed the MoU.
Karnataka is already a pioneer in IT, BT and R & D sectors. The MoU with ISMC would make Karnataka the place to look forward to in semiconductor technology, Bommai said in his address after signing of the MoU.
Commenting on the investment, Arvian Research said Karnataka has signed this major MoU when many other states are competing to draw investments in the Semiconductor Fab sector. “There will be a consortium led by ISMC. Also, an Intel acquired company Tower Semiconductor is also going to be part of the consortium. So the investment will have a certain element of Intel participation,” states Arvian Research.
Karnataka Chief Minister Basavraj Bommai said the government understands that it is not just the concessions or incentives, it is the conducive ecosystem that is needed to draw the investors.
“The State has the best infrastructure and skilled human resources. It is a major stride in the semiconductor sector. There are challenges ahead. The MoU would drive us to turn those challenges into opportunities,” said Karnataka Chief Minister Basavraj Bommai said.
The Union government under the able leadership of Prime Minister Narendra Modi has launched the Semiconductor Mission and it has spurred Karnataka to lead the march in this sector, Bommai said.
The MoU has provided a forum for technology and cultural exchange between Israel and India, Bommai added and requested ISMC not just to set up the plant here, but bring the latest developments in the technology as it evolves with time to this plant in Karnataka.
Minister for Higher Education, IT, BT CN Ashwathnarayan and senior officials were also present on the occasion.
He also said this MoU is a significant agreement amid the competition among various states to attract semiconductor fabs.
“Karnataka understands that it’s not just the fiscal incentives that matter but availability
of conducive eco-system and overall ease in operations are also important. We have one of the best infrastructures in the country and an abundant skilled talent pool,” said Basavraj Bommai.
He also said as a state we are not just trying to bring down the entry barriers for businesses but also make it easier to exit businesses, should it be so required.
“With robust policies, committed team, best in class infrastructure and ever-increasing talent pool of workers, Karnataka is on its way to becoming a premier investment destination. I invite all of you to be a part of this growth story,” said Basavraj Bommai.
Israel Ambassador to India Naor Gilon announced that Israel-based Tower has signed a memorandum of understanding with the Karnataka Government to set up a semiconductor fab manufacturing facility to give employment of 1500 people in the first phase itself.
“This is a great moment in the history of Indo-Israeli relations. I am happy that both countries believe in certain fundamental ethos and the new synergy in science and technology and business investments show the maturity of this relation,” said Israel Ambassador to India Naor Gilon.
