Silectric Semiconductor Manufacturing, Supported by Zoho, Would Invest INR 3,425 crore in Karnataka

Nitin Konde, Varun Bhardwaj

Dec 25, 2024 — 3 min read

Silectric Semiconductor and Zoho to Invest INR 3,425 Cr in Karnataka

At Kochanahalli in Mysuru, Karnataka's first electronics manufacturing cluster will get an investment of INR 3,425.60 crore from Silectric Semiconductor Manufacturing Pvt Ltd, which was founded by Zoho's directors and would generate 460 jobs. Under the direction of Chief Minister Siddaramaiah, the 64th State High-Level Clearance Committee (SHLCC) cleared nine applications totalling INR 9,823 crore across the state's industrial sectors, which are anticipated to create INR 5,605 in employment. "A significant milestone for the state is the first semiconductor project in the electronics manufacturing cluster at Kochanahalli, Mysuru," Siddaramaiah stated.

234 acres of land in Kochanahalli, close to Kadakola in Mysuru, have been set aside by the state government for semiconductor and electronics manufacturing cluster (EMC) facilities. Additionally, a new Electronics System Design and Manufacturing (ESDM) policy is being planned by Karnataka.

State Selected 901 Acres of Land for Semiconductor Sector

For the semiconductor industry, the state has designated 901 acres of land spread among four industrial clusters. Karnataka's Information Technology and Biotechnology Minister Priyank Kharge had previously announced the identification of a 224.5-acre cluster in Hubballi near Belur-Kotur, 245.67 acres in Kochanahalli in Mysuru, 218.20 acres in the Vasanthanarasapura Industrial Area in Tumakuru, and 213.14 acres in Hosahalli in Bengaluru Rural. Kharge, however, voiced reservations about luring semiconductor companies. In reference to Centre favouritism, he stated that although the state government had secured investments totalling INR 70,000 crore in the sector after touring several nations, a single phone call from New Delhi would compel them to invest in Gujarat.

Kharge's worries had also been echoed by MB Patil, the State Minister for Large and Medium industries. According to Patil, a lot of businesses are investing in Gujarat since the Union government is providing 50% incentives on top of the 30% incentives provided by the state government, which means that businesses only have to pay 20% of the total cost. The state would be able to draw in investments in the semiconductor sector if Karnataka was given comparable incentives. "I have also brought this issue to the attention of the Union Minister of Heavy Industries, HD Kumaraswamy," said Patil.

Other Upcoming Key Projects in Karnataka

Three new investments totalling INR 6,573.6 crore of the INR 9,823 crore in investments approved at the State High-Level Clearance Committee meeting have the potential to create 4,427 jobs: Sansera Engineering Limited (INR 2,150 crore investment, 3,500 jobs) at Harohalli; Silectric Semiconductor Manufacturing Private Limited (INR 3,425.6 crore investment, 460 jobs) in Mysuru; and DN Solutions India Private Limited (INR 998 crore investment, 467 jobs) at ITIR, Devanahalli. Furthermore, six investment proposals totalling INR 3,249.7 crore are now in the works and are anticipated to create 1,178 jobs.

A study was requested in the meantime about businesses that purchased land from the Karnataka Industrial Areas Development Board (KIADB) but do not begin operations within the allotted time. "Where necessary, fines will be imposed on such companies," Patil stated. In order to address the issue of giving farmers a portion of the income from by-products, Patil also instructed sugar companies to look at the methods used in Tamil Nadu and Maharashtra.