The semiconductor fabrication plant will be fully implemented by the Israel-based company over the next seven years; The MoU for the fab follows a nearly $10bn incentive package announced by the Indian government for the development of semiconductors and display manufacturing ecosystem in the country

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Karnataka govt signs MoU with ISMC Analog Fab for setting up a semiconductor fab in the Indian state. (Credit: marijana1 from Pixabay)

Israeli firm ISMC Analog Fab has entered into a memorandum of understanding (MoU) with the Karnataka state government in India for establishing a semiconductor factory (fab) with an investment of INR229bn ($3bn).

The MoU was signed in the presence of Karnataka Chief Minister Basavaraj Bommai.

ISMC Analog Fab will fully implement the semiconductor fab project over the next seven years. The fab is expected to generate jobs for 1,500 people.

Bommai said: “Karnataka has signed this major MoU when many other states are competing to draw investments in the Semiconductor Fab sector.

“The state government understands that it is not just the concessions or incentives, it is the conducive ecosystem that is needed to draw the investors. Karnataka has the best infrastructure and skilled human resources.”

In December 2021, the Indian government announced an INR760bn ($9.94bn) incentive package for the development of semiconductors and display manufacturing ecosystem in the country.

Last week, the government held the inaugural three-day SemiconIndia 2022 conference during which multiple agreements/pacts were announced.

One of them is an MoU signed by Cyient, WiSig Networks, and IIT Hyderabad to enable production of “5G Narrowband-IoT- the Koala Chip, Architected and Designed in India” at a mass scale.

A MoU was signed between Signal chip Innovations, MeitY, and Centre for Development of Advanced Computing (C-DAC) designing, manufacturing, and deployment and maintenance of a million integrated Navigation with Indian Constellation (NavIC) and GPS receivers.

The conference also saw the announcement of a partnership between Synopsys, Siemens EDA, Cadence Design Systems, and Silvaco. The collaboration aims at making available electronic design automation (EDA) tools and design solutions for Chips to Startup (C2S) Programme of CDAC.