Tuesday, September 17, 2013: The state government of Karnataka is hesitant to host a chip fabrication facility. On Thursday, the Centre gave in-principle approval for setting up of two chip fabrication unit that accounts for an investment to the tune of Rs 500 billion.
Though Bengaluru is regarded as one of the world’s leading chip design services hubs and was also the first one to roll out semiconductor policy, it views establishment of a chip fab as an indulgence. According to I S N Prasad, state’s former IT Secretary the fab will necessitate an unreasonable demand on water resources, hence such a demand cannot be afforded by the state.
“The issue will be reviewed after taking into account the specifics of the Union Cabinet’s approval and the Karnataka government’s requirements and priorities,” The Times of India quoted Srivatsa Krishna.
It is likely that the two proposed projects may make its way towards Gujarat and NOIDA. The fact is fabs need great amount of high quality water and power and the states, which are supposed to host these have to provide considerable amount of subsidies on such resources due to the underlying reason that it will be difficult for a fab to compete on a global level and make profit without the support of the government. The semiconductor community had appreciated the decision of the Centre to set up the fabs as presently most of the electronics products are imported.
