Karnataka IT minister Priyank Kharge said that despite the state contributing 10 per cent of the national electronics manufacturing output, it has not been given a level playing field. He said that the semiconductor manufacturing units are in states that do not have the ecosystem or the skill set, calling it unfair. 

Kharge in an interview to Moneycontrol said, “Five semicon manufacturing units, four are in Gujarat, and one is in Assam, but they don’t have an ecosystem of skills there. They don’t have an ecosystem of research there. They don’t have an ecosystem of incubation. They don’t have a system of ecosystem of innovations…when 70 per cent of the chip designing talent lies in Karnataka, I don’t understand why the government wants to push to another state by using political clout. That is unfair.”

Kharge said that if India has to be transformed into a manufacturing hub or a chip designing hub then it has to happen in Karnataka, adding that the state is better suited to drive India’s semiconductor ambitions. 

The central government is using political influence to divert semiconductor investments away from Karnataka. 

There are five semiconductor units under India Semiconductor Mission (ISM) that will receive central and state government subsidies, with an outlay of Rs 76,000 crore – Micron’s unit in Sanand, Tata Electronics-Powerchip Semiconductor’s unit in Dholera, CG Power-Renesas Electronics’ unit in Sanand, Keynes Semicon’s unit also in Sanand, and Tata Semiconductor Assembly and Test’s unit in Assam’s Morigaon.

Prime Minister Narendra Modi after being elected for his third term, said that India is already the second-largest smartphone manufacturer. “Now, we will increase work in semiconductors and electronics production sectors,” he had said, adding the government’s aim to increase production in defence and exports, and green energy and green mobility.