Karnataka Ties Up With Israel's ISMC To Set Up $3 Billion Semiconductor Plant

ISMC is a joint venture between Abu Dhabi-based Next Orbit Ventures and Israel's Tower Semiconductor.

New Delhi: The state government on Sunday said the international semiconductor consortium ISMC will invest $3 billion (about Rs 23,000 crore) to set up a chip-making plant in Karnataka, said an official release issued by the Government of Karnataka.

ISMC is a joint venture between Abu Dhabi-based Next Orbit Ventures and Israel's Tower Semiconductor. 

According to the release, the company will complete the project over a period of seven years and it will generate employment opportunities for about 1500 people. Dr. EV Raman Reddy, Additional Chief Secretary in the State Information Technology and Biotechnology Department, and Ajay Jalan, Director, ISMC, signed a Memorandum of Understanding in the presence of Chief Minister Basavaraj Bommai in this regard.

"Karnataka has signed this major MoU when many other states are competing to draw investments in the Semiconductor Fab sector. Karnataka government understands that it is not just the concessions or incentives, it is the conducive ecosystem that is needed to draw the investors. The State has the best infrastructure and skilled human resources," the Chief Minister said.

Welcoming the deal, the Chief Minister said, "This MoU is a significant agreement amid the competition among various states to attract semiconductor fabs. Karnataka understands that it's not just the fiscal incentives that matter but availability of conducive eco-system and overall ease in operations are also important."

The central government also has high expectations from semiconductor manufacturing. Electronics and Information Technology Minister Ashwini Vaishnaw had said in a program recently that the government expects that in the next four years, semiconductor manufacturing will bring an investment of about Rs 1.7 lakh crore in the country and create employment opportunities for about 1.35 lakh people.