Karnataka IT Minister Wants Clarification From Center On Diverting Major Chip Projects to Gujarat

Karnataka has 70 percent of India’s overall chip design and contributes 10 percent to the nation’s electronics manufacturing. Therefore, on what basis are projects moving to Gujarat?

Karnataka state government’s IT minister Priyank Kharge has alleged that the central government has been knowingly diverting all semiconductor investments from Karnataka to Gujarat. 

According to minister Kharge, Karnataka, Tamil Nadu, Andhra Pradesh are well-known for large-scale industrialization, both hardware manufacturing and software. On what basis all the significant semiconductor investments are moving to Gujarat from Karnataka, questions Kharge. The Silicon Valley of India boasts 70 per cent of the overall chip design in India and also has a well-established electronics manufacturing ecosystem. 

There needs to be a level playing field for Karnataka in the semiconductor industry. The state contributes 10 percent to the nation’s electronics manufacturing yield, and the central government is biased towards a particular state. The state’s IT minister believes that if the nation wants to grow in semiconductor manufacturing, then it has to begin in Karnataka. 

The minister added that the wheel is being reinvented for a particular state out of some personal favour. Out of the five major semiconductor projects, four are in Gujarat and one in Assam, and the sad part is that none of these states has the talent pool to operate the units. Moreover, there are no incubation centres or research units.

The India Semiconductor Mission is now evaluating the proposals for 20 more projects across various domains such as fabrication, display, compound semiconductors, assembly, and testing. As of now, five semiconductor projects with an investment of Rs 1.52 lakh crore have been approved by the government. Four significant projects, such as Micron, Tata-PSMC, CG Power, and Kaynes, are setting up units in Gujarat. The Karnataka IT ministry wants clarification from the centre regarding the concept behind the semiconductor revolution centred around Gujarat.