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The International Semiconductor Consortium (ISMC) has signed an MoU with the Karnataka government to set up an analog semiconductor plant with an investment of $3 billion.
The ISMC is a Joint Venture between Next Orbit Ventures, based in UAE, & Tower Semiconductor, based in Israel. Intel has announced plans to acquire Tower Semiconductor.
This project is expected to generate 1,500 direct and 10,000 indirect jobs. The company plans to acquire 150 acres of land in Mysuru's Kochanalli district. Water, Power, talent, high quality of living, and the incentive package were the major reasons for choosing Mysore.
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Some of the main reasons for selecting Karnataka is that the state government announced a subsidy of 25% on land, except Bengaluru Urban & Rural, and a 20% subsidy on plants & machinery. Moreover, Karnataka is home to more than 300 export-oriented electronics manufacturing units, contains 85 fabless chip design houses, and is the leading aerospace & defense equipment producer in India.
Ajay Jalan, the director of ISMC, said that the company can complete the construction of its plant in four years after the government approves them for the incentives announced in the Rs 76,000 crores India Semiconductor Mission.
This makes ISMC the third company to apply for the Rs 76,000 crore PLI, the first two being Vedanta-Foxconn JV & Singapore-based IGSS.
Ever since the COVID-19 pandemic hit, the demand for electronic devices shot up. In the face of increased demand, current production could not keep up as there was a global crisis of semiconductors. The market for semiconductors was $20 billion in 2020 and is forecasted to grow up to $63 billion by 2026.
Article by Aman Agarwal.
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