Cabinet subcommittee has approved incentives for proposed investments by Applied Materials, Lam Research, and Bharat Semi Systems, marking a significant move towards establishing Karnataka as a semiconductor powerhouse.
The proposals were placed before the Cabinet subcommittee as these are mega and pioneering projects for the state, with the potential to significantly boost Karnataka’s tech ecosystem. Only the Cabinet or its subcommittee has the authority to approve incentives that go beyond those outlined in the state’s Electronics System Design and Manufacturing (ESDM) Policy.
Karnataka is intensifying its efforts to position itself as a global semiconductor hub. Applied Materials will set up India’s first-of-its-kind research and development (R&D) Fab, Innovation Center for Semiconductor Manufacturing (ICSM), in Bengaluru, with an investment of Rs 48.51 billion over 10 acres. The project will generate 1,500 jobs and serve as a collaborative platform for advanced chip and display innovations.
Lam Research plans to establish two units in Karnataka: an advanced R&D lab with a Rs 67.90 billion investment, and a semiconductor silicon component manufacturing facility with a Rs 91.11 billion investment. Together, the projects will create 1,400 jobs and support advancements in 2nm technology and silicon ingot production.
Further, Bharat Semi Systems will set up an integrated design and manufacturing semiconductor unit in Mysuru, including both design and Fab facilities, with an investment of Rs 23.42 billion. The project will focus on compound semiconductors such as silicon carbide and gallium nitride, essential for defence, telecom, and climate-resilient technologies, creating over 620 jobs.
