Bengaluru: In a bid to expand Karnataka’s semiconductor ecosystem, IT/BT Minister Priyank Kharge said on Friday that the Siddaramaiah administration is considering the development of the Bengaluru-Mysuru belt as a hub for the semiconductor industry. 

This comes at a time when the state is competing with the likes of Tamil Nadu and Gujarat to attract investment in the sector. These states have been offering incentives like higher subsidies to attract more investments and create jobs.

In a curtain raiser press briefing for Bengaluru Tech Summit 2024, Kharge also said that the state would set up a working committee in the next 15 days to work on a ‘Strategy for AI and AI policy’.

Meanwhile, Chief Minister Siddaramaiah held a breakfast meeting with information technology and biotechnology (IT/BT) sector chiefs, where he said the government would encourage companies to set up Global Capability Centres (GCCs) beyond the capital city.

“The upcoming GCC policy of the Government of Karnataka will focus on easing regulations and incentivising large companies to set up operations in the state, especially in Beyond Bengaluru areas,” the CM said at the meeting.

“As we look to the future, our focus is on embracing the next wave of technological advancements. AI, machine learning, blockchain and quantum computing are the building blocks of the next phase of our digital evolution. We are committed to investing in these technologies to ensure that Bengaluru and Karnataka remain at the cutting edge,” the CM said.

The state government has made semiconductors one of its investment priorities and has chosen to attract companies to invest in Bengaluru and other cities. It is developing Bengaluru as a semiconductor design hub, with Mysuru as a centre of manufacturing and other related activities.

“We are trying to push this out of Bengaluru. I have already written to the central government to provide us with incentives or benefits as soon as possible,” Kharge said at the media interaction. The state awaits production-linked incentives (PLI) and fiscal support from the Centre to push these initiatives

Kharge said that the state government has recognised four electronics manufacturing clusters and anchor participants have shown concrete interest in investing in these hubs.