Karnataka Clears 3 Semiconductor Projects Worth ₹23,000 Crore

In the recent cabinet sub-committee meeting chaired by Karnataka chief minister Siddaramaiah, the state approved three major semiconductor projects worth over ₹23,000 crore. These aim to strengthen the state’s position as a global hub for chip manufacturing and innovation. 

The three proposals are spread across three different companies: Applied Materials India, Lam Research, and Bharat Semi Systems. They are expected to generate over 3,500 jobs and develop advanced R&D and manufacturing infrastructure in Bengaluru and Mysuru. The projects will focus on next-generation chip technologies, silicon ingot manufacturing, and compound semiconductors.

Karnataka’s IT/BT minister Priyank M Kharge also announced this in a post on X. He said, “Karnataka is doubling down on its ambition to become a global semiconductor hub.”

According to the approved projects, Applied Materials India will invest ₹4,851 crore to establish India’s first Innovation Centre for Semiconductor Manufacturing (ICSM), an R&D fab located on a 10-acre site in Bengaluru. Kharge said, “It will create around 1,500 jobs and become a collaborative platform for next-gen chip and display innovations.”

Lam Research will invest ₹6,790 crore in an advanced R&D lab and ₹9,111 crore in a semiconductor silicon component manufacturing unit, both in Karnataka. These facilities will support 2nm technology and silicon ingot production and are projected to create 1,400 jobs.

Bharat Semi Systems plans to set up an integrated design and fabrication unit in Mysuru with a ₹2,342 crore investment. The facility will work on compound semiconductors like silicon carbide and gallium nitride, which are crucial for defence, telecom, and climate technologies. It is expected to generate over 620 jobs.

Kharge described the approvals as a “massive boost to our tech ecosystem” and reiterated the state’s ambition to lead India’s semiconductor mission.