Karnataka Government Approves 3 Semiconductor Projects Worth ₹23,000 Cr

The decision reflects Karnataka’s sharpened focus on becoming a global leader in semiconductor research, design, and manufacturing.
Karnataka Government Approves 3 Semiconductor Projects Worth ₹23,000 Cr
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In a bold stride toward shaping India’s semiconductor future, the Karnataka government has approved three landmark projects that promise to redefine the state’s technological landscape. With a combined investment exceeding ₹23,000 crore, these projects will significantly expand Karnataka’s semiconductor footprint, catalyze innovation, and generate over 3,500 high-skilled jobs in Bengaluru and Mysuru.

The approvals were finalized during a Cabinet Sub-Committee meeting led by Chief Minister Shri Siddaramaiah. The decision reflects Karnataka’s sharpened focus on becoming a global leader in semiconductor research, design, and manufacturing.

Announcing the approvals, Karnataka’s Minister for IT and Biotechnology, Priyank M Kharge, emphasized the state’s commitment to becoming a global leader in chipmaking. “Karnataka is doubling down on its ambition to become a global semiconductor hub. Together, these investments mark a decisive step toward making Karnataka a semiconductor powerhouse of the future," he shared on social media.

Three Strategic Projects, One Unified Vision

Applied Materials India will spearhead the transformation with the establishment of India’s first R&D semiconductor fabrication facility—Innovation Center for Semiconductor Manufacturing (ICSM)—in Bengaluru. With an investment of ₹4,851 crore and a 10-acre campus, this facility is envisioned as a collaborative ecosystem for next-generation chip and display technology. It will create approximately 1,500 jobs and position Bengaluru as a key node in the global semiconductor research network.

Lam Research, another global heavyweight, will roll out two advanced facilities in the state. The first is a cutting-edge R&D lab with an outlay of ₹6,790 crore, and the second is a silicon component manufacturing unit backed by ₹9,111 crore. These units will focus on pioneering technologies, including 2nm semiconductor processes and silicon ingot production, creating 1,400 new jobs and laying the groundwork for deep-tech manufacturing capabilities in India.

Bharat Semi Systems, a homegrown semiconductor firm, will anchor Mysuru’s entry into the high-tech domain with an integrated design-to-fabrication unit. With a ₹2,342 crore investment, this facility will specialize in compound semiconductors like silicon carbide and gallium nitride—materials critical for defence systems, telecommunications infrastructure, and climate-resilient technologies. The project is projected to add over 620 jobs.

A State Positioned for Global Relevance

These strategic initiatives are more than just industrial milestones—they signal Karnataka’s readiness to lead India’s semiconductor mission and participate meaningfully in the global chip supply chain. By fostering a mix of global expertise and domestic innovation, the state is cultivating a full-stack ecosystem that spans R&D, design, and advanced manufacturing.

The Path Forward

With an unparalleled combination of infrastructure, talent, and policy support, Karnataka is crafting a future-ready semiconductor ecosystem. These investments not only promise economic uplift but also cement the state’s reputation as a nucleus for cutting-edge technology and strategic industries.

In an era where semiconductors power everything from smartphones to satellites, Karnataka’s proactive approach could well make it the beating heart of India’s digital ambitions.

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