Karnataka: Cabinet committee clears sops for three semiconductor projects

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A Cabinet subcommittee chaired by chief minister Siddaramaiah on Wednesday cleared incentives for the proposed investments of Applied Materials, Lam Research and Bharat Semi Systems The subcommittee cleared attractive incentives for the three projects, which would mark a decisive step toward making the state semiconductor powerhouse, IT/BT Minister Priyank Kharge told ET.The subject came before the cabinet subcommittee as these are mega as well as pioneering projects for the state, promising a boost to the state's tech ecosystem. Only the Cabinet or its subcommittee is empowered to clear if the government wished to give incentives over and above the state's ESDM (Electronics System Design and Manufacturing) Policy.Karnataka, Kharge said, was doubling down on its ambition to become a global semiconductor hub. Applied Materials, the minister said, will set up India's first-of-its-kind R&D Fab—Innovation Center for Semiconductor Manufacturing (ICSM)—in Bengaluru. Spread across 10 acres with Rs 4,851 crore investment.The project, he posted on X, would create 1,500 jobs and become a collaborative platform for next-gen chip and display innovations.Lam Research would set up two units in Karnataka: an advanced R&D lab with an investment of Rs 6,790 Cr, and a semiconductor silicon component manufacturing facility with and investment of Rs 9,111 crore, creating 1400 jobs, delivering cutting-edge capabilities in 2nm technology and silicon ingot production.Bharat Semi Systems, Kharge said, will establish an integrated design manufacturing semiconductor unit including both a design plus Fab facility in Mysuru with Rs 2,342 crore. investment. It will focus on compound semiconductors like silicon carbide and gallium nitride—critical for defence, telecom and climate resilience creating 620 plus jobs.The subcommittee meeting was attended by Kharge, Industries Minister MB Patil, energy minister KJ George, and small-scale industries minister SB Darshanapur.

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