Bengaluru: The Karnataka government signed an Memorandum of Understanding (MoU) with Israel's ISMC Analog Fab Private Limited on Sunday to establish a semiconductor fabrication unit in the state with a USD3 billion investment.

According to an official announcement from the State Government, the company will implement the project over the next seven years, with the potential to employ 1,500 people. In the presence of Chief Minister Basavaraj Bommai, Additional Chief Secretary in the Department of IT, BT Dr EV Ramana Reddy on behalf of Karnataka and Director of ISMC Ajay Jalan signed the MoU.

"Karnataka is already a pioneer in the IT, BT, and R&D sectors," Bommai said after signing the MoU. "This MoU with ISMC will make the State a place to look forward to in semiconductor technology."  "Karnataka inked this major MoU at a time when many other states are vying for investment in the Semiconductor Fabrication sector. The Karnataka government recognises that attracting investors requires more than just concessions or incentives. It also requires a suitable environment. The state has the best infrastructure and highly trained personnel "said the Chief Minister.

It's a significant step forward for the semiconductor industry. There will be challenges ahead, but it would drive them to transform such challenges into possibilities.

The Chief Minister expressed his delight at the agreement, saying, "This Memorandum of Understanding is a significant agreement in the midst of a fierce battle among governments to recruit semiconductor fabs. Karnataka recognises that it is not just the financial incentives that matter, but also the availability of a favourable environment and overall ease of operations."

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