India’s dream to have a semiconductor lab is coming one step closer to reality. International semiconductor consortium ISMC recently signed an MoU with the Karnataka Government to invest $3 billion to set up a chip-making plant in the southern state of India.
ISMC is a merged business between Israel’s Tower Semiconductor and Abu Dhabi’s Next Orbit. Intel (US chip giant) has announced its plans to take over Tower.
There are two other companies that bid for Prime Minister Narendra Modi’s $10 billion incentive plan to set up a semiconductor and display units in India- Singapore-based IGSS and VedantaFoxconn joint venture. The locations are yet to be finalized for these.
Karnataka’s investment promotion division tweeted that India’s first semiconductor fabrication unit is expected to generate more than 1500 direct jobs and around 10000 indirect jobs.
ISMC is looking to acquire 150 acres in Kochanahalli industrial area in Mysuru to set up the 65-nanometer analog semiconductor fabrication unit. The director of the company, Ajay Jalan, revealed that the plant will be built in approximately four years after breaking ground. This will require the government to first approve the incentives promised under the India Semiconductor Mission scheme. Jalan further shared that the reason behind choosing Mysore as the location was factors like access to water, power, talent, decent quality of living and a customised incentive package.
After the Covid pandemic forced the entire world to rely on digital products, there was a significant increase in the demand for semiconductor chips. The worth of the Indian semiconductor market was $15 billion in 2020. According to the forecast made by the government, the market will reach an estimated value of $63 billion by 2026.
On Friday, Prime Minister Narendra Modi said that India is willing to offer their support to companies who are looking to invest in chip manufacturing.
