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Karnataka seeks Centre's support for semiconductor investments akin to Gujarat

3 weeks ago 30

Industries & Infrastructure Minister MB Patil on Tuesday sought similar support for semiconductor investments in Karnataka as Prime Minister Narendra Modi’s home state of Gujarat is getting for the Micron Technology's project.

The US chipmaker has pledged the largest investment under the Indian Semiconductor Mission (ISM) of $ 2.75 billion to set up an assembly, testing, marking and packaging (ATMP) plant at Sanand in Gujarat. The Union Cabinet cleared the multinational giant’s investment in June last year.


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Micron, Patil told media persons, was getting a subsidy of 50% from the union government and incentives worth 20% from the Gujarat government, and was investing only 30% of equity.

He said he would meet Heavy Industries Minister HD Kumaraswamy and request him to treat Karnataka on equal footing with Gujarat. "I would urge him to support his own state of Karnataka like Prime Minister Narendra Modi is supporting Gujarat."

Kumaraswamy, in a post on X two days ago, said semiconductor was a strategic industry. “It is a basic requirement for electronics and automobile manufacturing. Both these sectors generate lots of employment. I greatly appreciate the semiconductor related initiatives taken by the PMO and will work towards fulfilling them through my ministry.” His clarification followed after his reported comments on the Centre’s subsidies for the project created a minor furore.

In a recent chat with the media, IT/BT Minister Priyank Kharge had played down Micron's investment as a "scripted story of success" by the western state.

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Kharge wondered if anything significant in terms of investment was coming from Micron as the lion's share of the investments was coming from the governments of India and Gujarat. “Does Gujarat have funds to share 80% of investment,” Kharge had asked.

Karnataka's industries department was also in talks with the company and hopeful of clinching the investment until Gujarat sealed it.

Micron’s Indian American CEO Sanjay Mehrotra had met Prime Minister Narendra Modi in Gujarat in July, last year, and discussed plans to bolster the semiconductor manufacturing ecosystem in India.

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