After getting the cabinet nod for the Karnataka Semiconductor Policy 2010, the state IT department is planning to transform the state as the semiconductor hub of the country.
The state, a pioneer in the IT revolution of the country, is now exploring options like partnerships with fab manufacturing countries, research and development organisations and also with academic institutions to explore possibilities for the growth of semiconductor companies located in the state.
The state has also offered various fiscal incentives to companies to boost the growth of electronic sector.
Global semiconductor design and manufacturing market size is expected to be around $ 200 billion. The semiconductor design market in India was $6.5 billion in 2009 and is estimated to cross $7.5 billion in 2011.
Currently, the state has a presence of more than 80 design companies like the AMD, Intel, Texas Instruments, Broadcom, ARM among others and it contributes to over 70 per cent of the overall India market.
Ashok Kumar Manoli Principal Secretary for IT BT and ST Karnataka State said: "We announced semiconductor policy last year focusing on the need of semiconductor sector.
We now realised the need for a policy for manufacturing and has come out with Karnataka Electronics Hardware Policy and has earmarked Rs 25 crore as budgetary allocation for implementation of the policy."
According to a recent report from ISA, by the year 2020 electronics consumption in India will reach $400 billion from its current share of$45 billion.
Though India is a big consumer of electronic equipments majority of the semiconductor and electronic equipments are imported from countries like Taiwan, China, Singapore. Industry experts believe that it can act as a barrier for the growth of the sector in India, as it will lead to an import oriented market.
"India has to develop the manufacturing capacity to become a leader in the semiconductor business. Taiwan is one of the biggest fab country in the world and we are exploring various partnership programme with the country. Taiwan is also looking at possibilities of establishing electronic hardware zone in the state," said Manoli.
Karnataka has recently signed an MoU with Israel's MATIMOP, the Israeli Industry Center for R&D, for research and development partnership.
"Other than these partnerships African country Rwanda is very keen on a MoU to draw benefits from the IT strengths of the state," he said.
With the semiconductor policy government is also promoting establishment of solar farms and solar Photo voltaic manufacturing.
The state government has set up the first solar farm in Bangarpet taluk of Kolar with a capacity to generate 3MW power. Two other plants of 3 Mw capacity are proposed to be set up in Raichur and Belgaum.
Earlier, in order to enable the semiconductor companies to avail the benefits enumerated in the Policy and to create awareness among the industrialists, The Department of IT, BT and S&T, Government of Karnataka organised a half-day event in coordination with ISA and MAIT.
