‘Karnataka Will Lead India’s Semiconductor Revolution,’ says State IT/BT Minister Priyank Kharge

Semiconductor Fabless Accelerator Lab (SFAL) CoE for fabless semiconductors, has incubated 43 startups and benefited over 90 companies in the last five years. 

At a recent media briefing at the Vikasa Soudha, Karnataka IT/BT Minister Priyank Kharge highlighted the remarkable achievement and said, “With INR 21.56 crore investment, we’ve supported 200+ innovations, creating 800 ESDM jobs. SFAL startups have raised INR 140 crore, valued at INR 500 crore collectively.”

Success stories from SFAL include Calligo Technologies’ groundbreaking POSIT chip, Morphing Machines’ impressive $2.76 million funding round, and AB Circuits and Research Labs (ABCRL)’s pioneering automotive chip innovations.

As India becomes the world’s 2nd largest semiconductor consumer, Karnataka is positioning itself as a hub for semiconductor innovation and skilling, driving India’s transformation from a service-based to a product-driven economy.

India’s Semiconductor Plan

The Union Budget 2024-25 allocated Rs 21,936 crore to the Ministry of Electronics and Information Technology (MeitY), a 52% increase from the revised estimates of FY24, which were at Rs 14,421 crore.

This boost in funding underscores the government’s commitment to run multiple incentive schemes and programmes in key areas including semiconductor manufacturing, electronics production, and the India AI Mission. 

One of the focuses of this budget is the initiative to establish advanced semiconductor facilities in India, including compound semiconductors, silicon photonics, sensors fab; discrete semiconductor fab; semiconductor assembly, testing, marking and packaging (ATMP), and outsourced semiconductor assembly and test (OSAT) facilities. 

This initiative alone saw its allocation nearly triple to INR 4,203 crore, up from INR 1,424 crore in FY24.