Taiwan’s Allegiance Group To Invest ₹1,000 Cr In Karnataka’s Semiconductor Push

The Karnataka government has signed an MoU with Taiwan-based Allegiance International to establish an India–Taiwan Industrial Technology Innovation Park (ITIP) to bolster the state’s electronics and semiconductor manufacturing ecosystem. 

Under the agreement, the Allegiance Group will invest ₹1,000 crore over the next five years to develop the park, which is expected to generate around 800 direct jobs as Taiwanese firms set up advanced manufacturing, chip design, and R&D units.

Officials said the ITIP will operate as a dedicated hub for Taiwan’s electronics supply chain players, enabling technology transfer, component manufacturing, PCB production, and design innovation. The state expects the project to significantly strengthen Karnataka’s position as a leader in the Electronics System Design and Manufacturing (ESDM) sector.

CM Siddaramaiah said the collaboration “marks a significant step towards making Karnataka a global hub for semiconductor innovation,” adding that it will expand opportunities for local talent and bolster India’s position in the global value chain.

IT & BT Minister Priyank Kharge said the partnership reinforces Karnataka’s dominance in deep-tech and semiconductor design, noting that the government is committed to creating a level playing field for global investors in advanced technologies. Allegiance Group vice-president Lawrence Chen said the ITIP will “serve as a catalyst for Taiwanese companies looking to scale in India.”

The MoU aligns with national efforts under Make in India, Atmanirbhar Bharat, and the India Semiconductor Mission.

This push toward high-tech manufacturing comes after Burkhan World Investment (BWI) announced a ₹1,500-crore plan to build a GPU and AI server manufacturing facility near Devanahalli on Bengaluru’s outskirts. 

Backed by BWI subsidiary The Ghazi Group (TGG), the project aims to produce processors and computing systems for next-generation AI workloads. The state government said the project will bring together global and Indian partners — including Gigabyte, Sera Network, Resolute Group and Quad-Gen — to build an end-to-end AI hardware value chain, from components to export-ready assembly lines.