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Business Standard
KARNATAKA MAY GET INDIA'S FIRST SEMICONDUCTOR FAB FACILITY: REPORT
THE INTERNATIONAL SEMICONDUCTOR CONSORTIUM'S (ISMC)-PROPOSED $3 BILLION FAB MAY
START CONSTRUCTION AS EARLY AS FEBRUARY 2023
Topics
semiconductor | Karnataka | PLI scheme
BS Web Team | New Delhi
Last Updated at November 17, 2022 09:45 IST
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* ALSO READ
TAIWANESE FAB MAJOR PSMC LOOKING TO SET UP SEMICONDUCTOR PLANT IN INDIA
CENTRE HOLDS SAMSUNG'S INCENTIVE OF RS 900 CR UNDER PLI SCHEME FOR FY21
TWO INDIAN COMPANIES TO PICK UP OVER 26% BUT LESS THAN 51% STAKE IN ISMC
NEXT ORBIT-LED CONSORTIUM TO MAINLY HAVE INDIAN FIRMS AS EQUITY HOLDERS
FAULTY INVOICES FORCE SCRUTINY; GOVT DELAYS PLI SOPS FOR SMARTPHONE MAKERS
*
Karnataka may become India's first state to have a semiconductor fab. The
International Semiconductor Consortium's (ISMC's) proposed $3 billion fab may
start construction as early as February 2023, said a report in Mint.
The ISMC will make 40-65 nanometre analog chips which will cater to "defence and
auto sectors" and to some other sectors, the report added.
"We will probably become the first state in India to have a semiconductor fab.
ISMC has the technology and the capability. Subject to the central government’s
approval, we hope to see work starting on this plant from February," Karnataka
Minister for Information Technology, Electronics, and Skills Development, CN
Ashwath Narayan, was quoted as saying by Mint.
The Centre had announced subsidies of up to 50 per cent of the project costs for
semiconductor manufacturers under its Rs 76,000 crore Production-linked
Incentive (PLI) scheme in 2021. Moreover, the latest set of restrictions imposed
by the US on sales of semiconductor-making equipment to China has encouraged
companies to shift to India.
The report added that India already has expertise in designing chips but the
lack of fab pushes it to depend on imports.
ISMC, which is a joint venture between UAE's Next Orbit Ventures and Israel's
Tower Semiconductor, will be among the three consortia shortlisted by the Centre
for incentives. Tower Semiconductor was acquired by Intel Inc in February.
Foxconn and Vedanta earlier this year announced setting up a semiconductor
facility in Ahmedabad. Singapore's IGSS Ventures will also set up a $3.2 billion
semiconductor park in Tamil Nadu.
All of the projects will be provided with government incentives. It would take
about 4-5 years, once the construction starts, for the ISMC's plant to become
operational.
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First Published: Thu, November 17 2022. 09:40 IST
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