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Karnataka details semiconductor policy

Posted: 09 Feb 2010 ?? ?Print Version ?Bookmark and Share

Keywords:ISA Vision Summit? India semiconductor policy? India electronics?

The government of Karnataka, in association with IT department and the India Semiconductor Association (ISA), has disclosed the state semiconductor policy at the 5th ISA Vision Summit 2010. The policy was released by Karnataka chief minister B S Yeddyurappa in the presence of the state's IT & BT Minister, Katta Subramanya Naidu, chairman B.V Naidu, India government DIT additional secretary Rakesh Singh and other dignitaries from the government and the industry.

Addressing the summit Katta Subramanya Naidu said, "In the next 10 years ICT would decide the academic power of the country and it is driven by semiconductor industry. Bangalore is the hub and a key driver in the business. In line with this Karnataka is the first state government to announce a semiconductor policy."

Katta Subramanya Naidu enumerated a few of the initiatives that the government would be taking as part of the policy including:

??Setting set up a fund of Rs.10 crore ($2.17 million), which would be available to the private companies covering up to 50 per cent of their R&D expenses, and subject to a limit of Rs.10 lakh ($21,740) per unit. This is intended to encourage and innovate R&D in chip design, product development in the nation.

??Contribute 50 per cent of the total cost of equipment to set up a lab as a one-stop solution for hi-tech facilities including chip-testing to encourage innovation and R&D

??Establish a ITIR (IT investment region) near the Bangalore international airport which would be a trend setter in the country. This is expected to create 4million jobs in the decade.

??Semiconductor-focussed schools to be set up under IIIT at Rs.10 crore ($2.17 million)

??Fiscal benefits in line with the state industrial policy

The chief minister of Karnataka, B.S.Yeddyruppa in his address stated, "A comprehensive policy has been set up to cover VLSI design, EDA, solar, photo, embedded and other components of the sector. This policy will create a new beginning in the decade. The ISA Vision Summit has provided an ideal platform for international thought leadership to focus on India's growth in the semiconductor industry." He noted that the IT and BT state department worked in close partnership with ISA to create the exclusive policy. "I am given to understand the industry will grow to $400 billion (Rs.1,847,080 crore) nationally by 2020 and I can assure that more than 30 per cent of it will be contributed from Karnataka. Karnataka is the undisputed leader in IT contributing to $15.5billion (Rs.71,574.35 crore) of software exports last year of which more than 30 per cent pertained to high-end technology and embedded designs. Multinational companies involved in semiconductor design are located in Bangalore making it the largest hub. Over 80 per cent of design work is done in Bangalore and we propose to create fund for semiconductor excellence in R&D and chip design for Rs.10 crore ($2.17 million)."

Lauding the policy, ISA chairman, B.V. Naidu said, "ISA welcomes the Karnataka Semicon Policy and we are happy that most of our recommendations to the government have been considered and this policy will play a significant role for achieving $120 billion electronic system design and manufacturing (ESDM) industry to grow in Karnataka. Announcement of the semiconductor policy is the first of its kind in India and reflects the spirit of government to continue its growth in the country."

Unveiling of the SemiCon policy

Unveiling of the SemiCon policy: Left to right: B.V. Naidu, B.S.Yeddyurappa, Katta Subramanya Naidu, Rakesh Singh, Ashok Kumar C Manoli

Rajiv Kapur, managing director, Broadcom India, said, "ISA is pleased to see Karnataka show leadership by recognizing the opportunity available to take the industry to the next level. This policy is the first of its kind coming from a state government and will play a huge role in stimulating growth."

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