This Group Of Investors Will Spend Rs 23,000 Crore To Launch India’s 1st Semiconductor Factory In India!
- ISMC Digital Fab has signed an agreement with the Karnataka government for setting up India’s first semiconductor fabrication unit.
- On 15th December 2021, the government of India had announced a new incentive scheme worth Rs.76,000 crore (approximately $10.2 billion) in a push to boost the semiconductor ecosystem in India.
ISMC Digital Fab is one of the three applicants for the Union Government’s Rs.76,000 crore ($10-billion) incentives for semiconductor manufacturing. The company has signed an agreement with the Karnataka government for setting up India’s first semiconductor fabrication unit.
IMSC is representing a group of investors
ISMC, representing a group of investors led by Abu Dhabi-based company – Next Orbit Ventures, for establishing a semiconductor fabrication factory in India announced an investment of Rs. 22,900 crores ($3 billion).
The Karnataka Government suggested the group to look at setting up the semiconductor fabrication unit at the Electronics and Systems Design cluster in Mysuru.
IMSC is also considering setting up the factory in Gujarat
ISMC was also considering the option of setting up the proposed semiconductor fabrication factor at Dholera sir in Gujarat. The group is likely to have opted for Karnataka due to the water availability and also the additional incentives offered by the state.
The group has previously submitted an application for availing the Union Government’s incentive scheme for semiconductor fabrications.
Indian Government’s incentive scheme
On 15th December 2021, the government of India had announced a new incentive scheme worth Rs.76,000 crore (approximately $10.2 billion) in a push to boost the semiconductor ecosystem in India.
The group is reportedly planning to set up an Analog Fabrication in technology partnership with Israel-based Tower semiconductors (this company is now in the process of being acquired by Intel Foundry Services).
In July 2021, Ajay Jalan, the founder and managing director of Next Orbit Ventures, spoke on lenght on the subject of his ambition to establish a semiconductor fabrication factory in India.
ISMC proposes to establish a fabrication at the cost of a $3 billion project and if it’s proposal is selected, it is eligible for an incentive from the center for up to $0.9 billion.