India Semiconductor Association

The domestic semiconductor market is on a growth path with over 15 percent CAGR, which is encouraging in the present economic climate. Growth is primarily driven by the domestic demand for electronics products. The market for electronic products is expected to grow further in the coming decade.

The Chief Minister presented some highlights of the semiconductor policy. The ATMP units would be provided fiscal incentives and concessions such as investment subsidy, exemption from stamp duty, entry tax, interest free loan on VAT, industrial power tariff, etc. For large units with investment above $100 million, a special package of incentives and concessions would be considered.

He added that the Government would further strengthen the quality of human resources. Yeddyurappa, said: "We propose to create a fund for Semiconductor Excellence to support innovation and R&D in chip designing and product development with an initial funding of Rs 10 crores. A focused school under International Institute of Information Technology (IIIT) and a Research Lab would be set up at a cost of Rs 15 crores. A Characterization Lab would be set in the Orchid Tech Space, in STPI, located at the Cyberpark in Bangalore, with 50 percent funding support from the State Government."

While these initiatives are expected to spur the growth of R&D, the budding enterpreneurs can expect funding for their start-up in design and embedded software from the state-sponsored KITVEN fund, which will be enhanced by another Rs 25 crores.

The Chief Minister said that the Karnataka Semiconductor Policy is the first of its kind in the country and would go on to become a role model to follow for the other states. The State Government is committed to creating a friendly industrial environment, not only in Bangalore, but also in the fast growing tier-2 and tier-3 cities such as Mysore, Mangalore, Hubli-Dharwad, Belgaum, Shimoga and Gulbarga. Keonics has been assigned to the task of developing IT parks in the tier-2 and tier-3 cities.

He reiterated the commitment of the State Government to support industry in the state in all manners, and with trend setting and aggressive policies.