BANKING AND ECONOMY
International semiconductor consortium ISMC Digital Fab is to invest a whopping Rs.22,900 crores ($3 billion) to set up the first and largest semiconductor fabrication unit in India. The chip-making plant will be established in Karnataka and could create 1,500 direct jobs and 10,000 indirect jobs over the next 7 years.
For this, ISMC Digital Fab signed an agreement with the Karnataka government for setting up India’s first and largest semiconductor fabrication unit. The MoU was signed by Additional Chief Secretary, IT/BT Department, Dr.EV Ramana Reddy, and ISMC Director Ajay Jalan in the presence of Chief Minister Basavaraj Bommai.
The Union Government will provide $10-billion incentives for semiconductor manufacturing in the country. ISMC and Indian conglomerate Vedanta Ltd have applied for this incentive program. The state government of Karnataka announced a few subsidies in 2020, which includes a 25% subsidy on land only in areas other than Bengaluru Urban and Bengaluru Rural districts and a 20% subsidy on plant & machinery.
ISMC has sought 150 acres of land in the Kochanahalli Industrial Area in the Mysuru District. ISMC will set up a 65 nm Analog Fab in technology partnership with Israel-based Tower semiconductors.
Karnataka is home to more than 300 units export-oriented manufacturing units. It is the largest chip design hub in India, consisting of 85 fabless chip design houses and is the leading producer of aerospace and defense equipment in India.