The Bengaluru-Mysuru area has been cited by Amitabh Kant, the former CEO of NITI Aayog and a G20 Sherpa for India, as the most promising site for semiconductor design and manufacture in the country. Speaking on June 6 in Bengaluru at the India Global Innovation Connect event, Kant highlighted the region’s distinct advantages.

Ideal Conditions for Semiconductor Manufacturing

Kant noted that the Bengaluru-Mysuru region is a prime site for semiconductor fabrication facilities because it provides a consistent supply of electricity and necessary minerals. “In India, no place has a better ecosystem for semiconductor manufacturing than the Bengaluru-Mysore belt of Karnataka,” he said. “The region could potentially become the best place to drive both manufacturing and design centre for the world.”

Existing Semiconductor Ecosystem

Kant highlighted the region’s potential to serve multinational corporations, pointing out that Bengaluru and Hyderabad already host 30–35% of India’s semiconductor design work. Speaking about the planned location of India’s first tech park focused on quantum computing, he said that Karnataka is the best place for this kind of up-and-coming technology centre.

Government Focus on Skilling and Emerging Technologies

Kant emphasised that, during the next five years, the government will concentrate on equipping young people with skills in cutting-edge technology. “The next five years will focus entirely on skilling and apprenticeship, creating new jobs in emerging areas beyond just the IT sector,” he stated.

Need for Upskilling and Training

Kant emphasised the need for more businesses that upskill engineers in high-demand fields like data science and artificial intelligence. “At least two million developers with experience in developing new areas are needed. To match the challenges of today, engineering universities must immediately realign their curricula, he stated.

R&D Fund and Emerging Technologies

Kant also talked about the INR 1 Lakh Cr R&D fund that was revealed in the 2024 Budget and is set to launch in the next months. The goal of this fund is to encourage innovation and grow India’s startup scene. The government is concentrating on investing in India’s Quantum Computing Mission and offering a sizable production-linked incentive (PLI) programme for the development of semiconductors.

Recent Developments in India’s Semiconductor Sector

A semiconductor ATMP (assembly, testing, marking, and packaging) factory in Assam valued at INR 27K Cr was recently announced by the Tata Group. In Dholera, Gujarat, the Vedanta Group is constructing a chip foundry, and in Tamil Nadu, Zoho intends to open a commercial semiconductor manufacturing facility. In Sanand, Gujarat, Micron Technology recently revealed plans to build a semiconductor testing and packaging facility valued at INR 22K Cr.

India’s growing significance in the global semiconductor industry is reflected in projections that the country’s semiconductor market would exceed $150 billion by 2030.

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