Karnataka has signed an MoU with Israel-based ISMC Analog Fab Private Limited to set up a Semiconductor Fabrication plant in the State with an investment of ₹22,900 crore ($3 Billion). The MoU was signed between the State government  officials and the company in the presence of Chief Minister Basavaraj Bommai.

The company plans to complete the project over the next 7 years with an employment potential for 1,500 persons. Additional Chief Secretary in the department of IT, BT Dr. EV Ramana Reddy, on behalf of Karnataka and Director of ISMC Ajay Jalan signed the MoU.

Karnataka is already a pioneer in the IT, BT, and R & D sectors. The MoU with ISMC will make Karnataka the place to look forward to in semiconductor technology, Bommai said in his address after the signing of the MoU. Karnataka has signed this major MoU at a time when many other States are competing to draw investments in the semiconductor fab sector. Bommai said that the State government understands that it is not just the concessions or incentives, but the conducive ecosystem that is needed to draw the investors. The State has the best infrastructure and skilled human resources. It is a major stride in the semiconductor sector. There are challenges ahead. The MoU would drive us to turn those challenges into opportunities,’ Bommai said.

Bommai requested ISMC not just to set up the plant here, but to bring the latest developments in the technology as it evolves with time to this plant in Karnataka. On the occasion, Minister for Higher Education, IT, BT CN Ashwathnarayan and senior officials were also present.

“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 the availability of a conducive eco-system and the overall ease of operations are also important. We have one of the best infrastructures in the country and an abundantly skilled talent pool. As a State, we are not just trying to bring down the entry barriers for businesses but also make it easier to exit businesses, should it be so required. With robust policies, a committed team, best-in-class infrastructure, and an ever-increasing talent pool of workers, Karnataka is on its way to become premier investment destination,” Bommai added.