India's first and largessrt 65nm semiconductor fab to come up in a place called Kochanahalli in Mysore district of Karnataka state, an approximate 3 hours drive from the silicon city Bangalore. A company named ISMC funded by the Dubai based Next Orbit Ventures and technologically supported by Israel based Tower Semiconductor had signed agreement with the government of Karnataka. The ISMC to invest Rs. 22,900 crores ($3 billion) and has requested 150 acres of land for this plant. MoU was signed by E V Ramana Reddy, Chief Secretary in the department of IT, BT and Ajay Jalan, Director of ISMC in presence of Karnataka Chief Minister Sri Basavaraj Bommai on 1st May 2022.
Speaking on the occasion, Sri Basavaraj Bommai said “This MoU is a significant agreement amid the competition among various states to attract semiconductor fabs. Karnataka is gaining attention as the most favourable destination for investment with its exceptional customised incentive packages”.
Dr. Ashwath Narayan, Hon’ble, Minister for Minister of Higher Education, IT and BT, Science and Technology and Skill Development, Entrepreneurship and Livelihood said "“Semiconductor production in Karnataka will provide further impetus to the economy of the state and we are happy to support global firms to set up manufacturing facilities here”.
Dr. E.V. Ramana Reddy, said “The uptick in Indian investment in semiconductors coincides with the global demand for semiconductors amid a shortage expected to run through 2025. We have suggested an Electronics and Systems Design cluster in Mysuru as the investment destination for ISMC”.
Ms. Gunjan Krishna, Commissioner for Industrial Development, Director, Department of Industries and Commerce said, “The present geopolitical circumstances necessitate that India develops the ecosystem for the semiconductor manufacturing in the country and Karnataka is well poised to take advantage of that because of its robust ecosystem in the electronic chip design industry. The manufacturing facilities will only add to the growth of the sector.”
This new chip fab to initially make 65 nm analog chips from this plant. Karnataka has the largest electronics design and manufacturing ecosystem in India, which makes it the best fit state to have a semiconductor fab.