State Minister MB Patil seeks semiconductor investment support from the central government, citing Micron’s $2.75B example in Gujarat under the Indian Semiconductor Mission.
On Tuesday, Mallanagouda Basanagouda Patil, the Industries and Infrastructure Minister of Karnataka sought assistance from the Ministry of Heavy Industries for investments in the field of semiconductor manufacturing. He mentioned the recent investment of $2.75B by Micron Technology in the Prime Minister’s home state of Gujarat.
The American semiconductor company has committed the billion-dollar investment under the Indian Semiconductor Mission (ISM) to establish an assembly, testing, marking, and packaging (ATMP) facility in Sanand, Gujarat. The Union Cabinet approved the investment in June last year. Patil has demanded a similar investment in Karnataka.
According to Patil’s statement to the press, Micron was contributing only 30% of the equity investment and receiving a 50% subsidy from the Centre, besides incentives totalling 20% from the Gujarat government.
He further stated that he planned to meet Heavy Industries Minister HD Kumaraswamy soon and ask him to provide equal support to the latter’s native state as Prime Minister Narendra Modi is giving to Gujarat.
Two days ago, Kumaraswamy posted on X stating that semiconductors are a strategic industry essential for electronics and automobile manufacturing, both of which generate significant employment.
He also appreciated the semiconductor-related initiatives led by the PMO and expressed his commitment to advancing them through his ministry. His remarks followed reported comments about the Centre’s subsidies for the project, which sparked some controversy.
As reported by the Economic Times, IT/BT Minister of Karnataka Priyank Kharge recently commented to the media that Micron’s investment appeared to be a prearranged success story for the Western state.
He raised doubts about Micron’s own financial commitment, implying that the majority of the funding came from the governments of India and Gujarat. Additionally, Kharge questioned Gujarat’s capacity to fund 80% of the investment.
Incidentally, the Karnataka Industries Department was negotiating with Micron and was optimistic about securing the investment before Gujarat finalised the deal.
After the deal was sealed, Sanjay Mehrotra, Micron’s CEO of Indian American descent, met Prime Minister Narendra Modi in Gujarat in July last year to discuss enhancing India’s semiconductor manufacturing ecosystem.
