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ISMC joins hands with Karnataka government to set up semiconductor plant in the state

Highlights
 

  • ISMC has signed an MoU with the Karnataka government to set up a semiconductor chip-making plant
  • This will generate job opportunities and also make India an electronics manufacturing hub
  • Vedanta is also in advanced talks with Gujarat, Maharashtra, and Telangana to set up a semiconductor plant

International Semiconductor Consortium (ISMC) will invest $3 billion (~Rs 22,900 crores) in India’s southern state Karnataka to set up a chip-making plant. The state government announced the news on Sunday. 

Also Read: Indian government is planning an indigenous operating system to rival Android and iOS

For those unaware, ISMC is a joint venture between Abu Dhabi-based Next Orbit Ventures and Israel’s Tower Semiconductor. The development makes India’s ambition to become a semiconductor hub a reality. The government says that the country’s semiconductor market is estimated to grow to $63 billion by 2026 from $15 billion in 2020. 

ISMC to set up semiconductor plant in Karnataka

Tower Semiconductor, one of the partners of ISMC is expected to get acquired by US chipmaker Intel. The first semiconductor fabrication unit is said to generate more than 1,500 direct and 10,000 indirect employment opportunities. India had already announced $10 billion plan to attract chipmakers from around the world to set up their facilities in the country. This will also make the country an electronics manufacturing hub. 

Indian Prime Minister Narendra Modi and IT ministers laid out plans for investment incentives in the sector and said that they want the country to become a key player in the global chip market dominated by manufacturers in Taiwan and other countries.  

Vedanta, an Indian mining company is also expected to foray into the semiconductor manufacturing sector. As per Reuters report, the company is looking at Gujarat, Maharashtra, and Telangana to set up a manufacturing plant. Furthermore, it has planned an investment outlay of $20 billion for its semiconductor and display manufacturing facilities.

The demand for semiconductor chips has seen a huge rise due to the shortage caused by the COVID-19 pandemic and the geopolitical tensions between the US and China. Thus India looks to capitalise on the matters and establish itself as a semiconductor hub in the future.

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Viraj Gawde

Viraj loves being in the creative field. Being a tech guy and resident tech advisor for his friends and family, his interest lies in smartphones, laptops and cameras. Passionate about creating art, his forte lies in photography. In his downtime, he loves gaming on his self-built rig and supporting FC Barcelona.