Rs 23,000 Crore Investment to Launch India’s First Semiconductor Factory
ISMC Digital Fab, representing a group of investors led by Abu Dhabi-based Next Orbit Ventures, has signed an agreement with the Karnataka government to establish India’s first semiconductor fabrication unit. The project represents an investment of Rs 22,900 crore (approximately $3 billion).
The move comes after the Government of India’s Rs 76,000 crore ($10.2 billion) incentive scheme, announced in December 2021, to strengthen the nation’s semiconductor ecosystem. ISMC is among the three applicants for these incentives.
The proposed fab will be set up at the Electronics and Systems Design Cluster in Mysuru, chosen for its reliable water supply and attractive state-level incentives. While Dholera SIR in Gujarat was also considered, Karnataka emerged as the preferred location.
This landmark project marks a major step toward self-reliance in semiconductor manufacturing, positioning India as a competitive player in the global chip industry.
