Rs. 22,900 cr. semiconductor plant to come up in Mysuru
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Rs. 22,900 cr. semiconductor plant to come up in Mysuru

May 2, 2022
  • Kochanahalli belt near Kadakola likely location; Consortium seeks 150 acres
  • Stakeholders welcome move; to result in overall development of Mysuru region

Mysore/Mysuru: Stakeholders and industry captains have welcomed the State Government’s decision to set up a Semiconductor Fab Plant in Mysuru with an investment of Rs. 22,900 crore (Three Billion Dollars).

A Memorandum of Understanding (MoU) was signed in Bengaluru yesterday with Israel-based International Semiconductor Consortium ISMC Analog Fab Private Limited.

Additional Chief Secretary in the Department of IT, BT Dr. E.V. Ramana Reddy and Director of ISMC Ajay Jalan signed the MoU in the presence of Chief Minister Basavaraj Bommai.

Government sources said that the ISMC is one of the three applicants for the Union Government’s 10-Billion Dollar incentives for semiconductor manufacturing. This will be India’s first and largest semiconductor fabrication unit.

Sources from the Mysore Chamber of Commerce and Industry (MCCI) said that the likely location of the plant will be at Kochanahalli Industrial Area that is located near the Mysore Airport that is being expanded as a full-fledged Airport.

Kochanahalli is in close proximity to Kadakola, Adakanhalli, Thandya and Immavu that already have many industries.

The likely venue is also close to the Container Corporation of India (CONCOR) that is being constructed at Kadakola.

The ISMC has sought 150 acres to set up the semiconductor fabrication plant that is expected to generate more than 1,500 direct jobs and 10,000 indirect jobs.

MP welcomes move

Welcoming the setting up of the plant, Mysuru-Kodagu MP Pratap Simha has said that the Narendra Modi Government has reserved Rs. 75,000 crore to encourage semiconductor industries and the Mysuru plant will result in overall development of the region and will be a big boost to the industry sector.

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 “It is a matter of pride that the semiconductor Fab plant is coming up in Mysuru. This is the reason why I was pleading to develop the Mysore Airport to international standards, Mysuru-Bengaluru 10-lane Highway and also double-tracking the railway line between Mysuru and Bengaluru thereby achieving road, rail and air connectivity,” he added.

Boost to contract manufacturing

Arjun Ranga, Chairman,  Confederation of Indian Industry (CII), Karnataka State Council, told Star of Mysore that the semiconductor plant will change the industrial landscape of Mysuru. “This is a fantastic and a progressive project taken up both by the Basavaraj Bommai Government in Karnataka and Narendra Modi Government at the Centre and is in line with Atma Nirbhar Bharat,” he said.

Very few countries in the world have the capacity and the know-how to manufacture semiconductors and the industry coming to Mysuru is a matter of great prestige and it will open the floodgates of employment and growth. “Along with the semiconductor Fab plant many other supplier industries will grow and this will give a boost for contract manufacturing. It will revive the economy,” he added.

Noting that there will be a great requirement of water to the plant, Arjun Ranga said, “The Government must also devise a mechanism or a proper channel to release the effluents from the industry and this aspect is also important.”

Mysuru as industrial hub

Chairperson of CII, Mysuru Zone, Supriya Salian said that this a moment of pride for the Indian industry and  indeed an encouraging news specially for Mysuru.

“This will boost manufacturing while also contributing towards the dreams of Atma Nirbhar Bharat and the Prime Minister’s vision to establish India as an important partner in the semiconductor supply chain,” she said.

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It is a clear sign of how Mysuru is becoming a big industrial hub supported by the Karnataka Government’s Karnataka Digital Economy Mission (KDEM) and Beyond Bangalore initiatives. The completion of the Bengaluru-Mysuru expressway  and the approval for the expansion of the airport would also be the backbone for these developments, she said.  

“Mysuru will be on the global map of semiconductor industry and will encourage additional investments apart from generating direct and indirect employment. The local industry will also largely benefit from such investments,” Supriya Salian added.

Economic driver

Titular head of Mysore royal family Yaduveer Krishnadatta Chamaraja Wadiyar said, “I am very glad that the Karnataka Government is bringing ISMC to set up semiconductor Fab in Mysuru. Mysuru has a rich heritage of industry and giving impetus to economic drivers and this initiative will help stimulate growth for the country and our State, as well as our  local economy.”

More tax generation

Mysore Industries Association (MIA) Secretary Suresh Kumar Jain said that this was the most expected move to Mysuru that will boost all the other allied industries. It will lead to many job creations, growth and will revive the region’s economy. It will also boost tax generation.

K.B. Lingaraju, President of Mysore Chamber of Commerce and Industry (MCCI) said that Rs. 22,000 crore investment would change the face of Mysuru.

“Kochanahalli Industrial Area is already in the Government radar and this is a suitable location due to its close proximity with other industrial belt,” he added.

3 COMMENTS ON THIS POST To “Rs. 22,900 cr. semiconductor plant to come up in Mysuru”

  1. R RAJA CHANDRA says:

    Semiconductor industry has never succeeded in India. Particularly very few tried Chip Fab . BEL was a pioneer starting from Germanium to silicon Transistors. But Its forays in to Integrated Circuits lasted till liberalization when importing IC’s became cheaper and the strides elsewhere in the world in chip density and complexities was beyond the installed plant capacities. Staring of Semiconductor Complex in Mohali was an economic disaster as it was headed by a chameleon who knew how to manage the power corridors and was allowed to be destroyed when he could not deliver.

    Unless there are volumes to match the humongous investment and operational costs it is bound to fail. Besides we don’t have the required skilled labour, culture and high order of cleanliness required to run a fab.

    Seeking opinions from all and sundry would only fill your columns for a day !

    Hope i am proved wrong !

  2. Captain Jack Sparrow says:

    @B
    India will not do the chip design, which requires highly specialised microelectronics engineers. I was trained as one in the US in 1970s, but then the software and graphics were developed, as the complexity of the chip design and its functions increased enormously by many factors. Then the fabrication process is a mix of automation and labour-intensive for running the clean rooms. The US priced itself out, because of Labour costs. Intel and AMD companies gave way to Taiwanese companies.
    Hence, the industry unlike what you have said has moved on. BEL was decades ago. It is silicon foundries now. the silicon fabrication is highly automated, once the chip design is done , these days using graphic tools, that requires skilled engineers. The clean rooms and the fabrication facilities needing engineers, who oversee the processes starting from the chip design transfers to silicon wafers, doping etc.. These will be Israelis.
    The clean rooms need skilled, not that highly skilled people to run , once the facilities are set up. , which will be Indians..
    You have not understood, what Israel is attempting to do. Israel will provide the chip designs, the engineers essential to supervise running the clean rooms, testing of the fabricated chips etc.. They will set up these facilities and supervise their running. Indians will not do these.
    This is another way of using cheap labour India can provide, for tasks such as routine running of the clean rooms etc.. under Israeli engineers’ supervision

  3. Captain Jack Sparrow says:

    @B
    India will not do the chip design, which requires highly specialised microelectronics engineers. I was trained as one in the US in 1970s, but then the software and graphics were developed, as the complexity of the chip design and its functions increased enormously by many factors. Then the fabrication process is a mix of automation and labour-intensive for running the clean rooms. The US priced itself out, because of Labour costs. Intel and AMD companies gave way to Taiwanese companies.
    Hence, the industry unlike what you have said has moved on. BEL was decades ago. It is silicon foundries now. the silicon fabrication is highly automated, once the chip design is done , these days using graphic tools, that requires skilled engineers. The clean rooms and the fabrication facilities needing engineers, who oversee the processes starting from the chip design transfers to silicon wafers, doping etc.. These will be Israelis.
    The clean rooms need skilled, not that highly skilled people to run , once the facilities are set up. , which will be Indians..
    You have not understood, what Israel is attempting to do. Israel will provide the chip designs, the engineers essential to supervise running the clean rooms, testing of the fabricated chips etc.. They will set up these facilities and supervise their running. Indians will not do these.
    This is another way of using cheap labour India can provide, for tasks such as routine running of the clean rooms etc.. under Israeli engineers’ supervision

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