Karnataka leads India with its semicon policy

BANGALORE, INDIA: India Semiconductor Association, the apex trade body representing the Indian semiconductor industry, today released Karnataka Semicon Policy.

The semicon policy was unveiled by Karnataka Chief Minister BS Yeddyurappa and IT and BT Minister Katta Subramanya Naidu.

The new policy aims to encourage setting up of semiconductor units in Tier-2 cities other than Mysore, Mangalore, Hubli and it would also give incentive in the form of Investment Promotion Subsidy, provided in accordance with the Karnataka Industrial Policy 2009-2014.

While unveiling the new policy, Yeddyurappa said it is focused on segments like electronics device, design and manufacturing segment.

“It is the first of its kind in the country and would set a role model for others to follow. The new policy would create a new beginning in the decade,” said the Chief Minister.

Welcoming the policy, ISA chairman BV Naidu said ISA is happy that most of its recommendations to the Government has been considered.

“This policy will play a significant role in helping the 120 billion dollars electronic system design and manufacturing industry to grow in Karnataka,” he said.

Naidu added that the announcement of the semiconductor policy is the first of its kind in India and reflects the spirit of the government to continue its growth in the country.

The other key highlights of the Semicon Policy are:

- The state government would provide additional amount of Rs.25 crore, towards 26 per cent contribution, to the KITVEN IT fund for raising funds from the market to assist start up semiconductor units engaged in design and embedded software.

- Would provide financial assistance to firms for filing IP in accordance with the incentive provided in the Industrial Policy 2009-2014.

- The government would also provide assistance of 50 per cent of the total cost towards purchase of proposed equipment, for augmenting the Orchid Tech Space in STPI to a characterization lab. The remaining funds would come from the industry or mobilized through business model . This lab will be a one stop shop solution for hi tech facilities and will spur growth of R&D in future technology without financial burden to budding entrepreneurs.

- Government of Karnataka would provide all encouragement and assistance to the Solar PV Manufacturing units under the Karnataka Renewable Energy policy

- Government to set up a focused school under IIIT at a cost of Rs. 10 crore and strengthen the research labs in the institute at a cost of Rs.5 crore with a 25 per cent contribution from the industry.

- The Information Technology Investment Region (ITIR) is expected to create 4 million jobs in decade.

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 will play a big role in stimulating growth.”