Govt of Karnataka adds ₹ 2000 Crores Towards Electronics Manufacturing, In Addition To PLI Scheme


With PLI schemes in place, and India preparing itself to be the hub of semiconductor manufacturing, Dr. Ashwath Narayan, Former DCM, Karnataka, speaks on how the government can help in this area.  

The ELCINA-EFY webinar saw many dignitaries such as Raja Manickam, CEO, Tata OSAT; Amrit Manwani, MD, Sahasra Group; Rajoo Goel, secretary general, ELCINA; Dr Ashwini K Aggarwal, PhD, FIETE, Director, Applied Materials India; share insights on the topic “India Opportunities in Semiconductor and Packaging- Sector wise perspective of an OSAT”. With Bangalore being the hub of electronics in India, Dr. C. N. Ashwath Narayan graced the gathering to encourage the manufacturing of semiconductors in India. Dr. Narayan is an Indian politician who was inducted as a cabinet minister in Karnataka in August 2021 and is a member of the Karnataka legislative assembly representing the Malleswaram constituency in Bangalore. He also served as the 10th deputy chief minister of Karnataka, has a multifaceted personality and is a firm believer in technology. He is also an MBBS doctor.

In relevance to the topic, Dr. Narayan said “The entire country has been looking forward and working not only on the semiconductor manufacturing establishment but even the immediate initiative as pointed out by ELCINA to increase the semiconductor, wafer level packaging from the panel level packaging. I would like to recognize the contributions of professionals, industrialists and entrepreneurs like Rajoo Goelji, Amrit Manwaniji, Ashwini Aggarwalji, Rajamanickamji, and all other dignitaries who are taking the lead to build a brilliant India, with their experience and commitment. India looks up to you, because of the huge difference your efforts and commitment has made for building the nation. The foundation built by you, is truly remarkable and is appreciated. On our end we are strongly communicating that “Make in India”, Aatm Nirbhar Bharath under the leadership of our Honourable Prime Minister, should become the new reality. Its immediate implementation is eagerly awaited. Hence, how this goal can be achieved is of prime importance than just merely giving a statement.“

He explains that in line with the PLI schemes issued by the government of India; a special incentive has been added by the government of Karnataka for electronics manufacturing of up to ₹2,000 Crores for the next five years straight away. The response after this allocation is quite huge as 30-40 per cent of the funds allocated for 5 years are being exhausted already. “We take this consumption to be a good and positive response.”

He adds, “We do look forward to and encourage companies to increase semiconductor packaging. If there is any support that the state of Karnataka can offer, we look forward to doing so as close to 64% of the chip design takes place here. With many leading companies being present in Karnataka, we as a government have been consistent, irrespective of the ruling party. Sometimes the similar cannot be seen everywhere, especially in changing circumstances. However, Karnataka’s experience with any industry has never given an error signal. We have also reached out to the government of India stating the provision of 200 acres of land, near to the Kempegowda International Airport Bengaluru. We are willing to provide land, water and any necessity required for the semiconductor manufacturing unit to be established. We extend this invitation to start “Make in Karnataka”, eventually leading to “Make in India”. Thankfully, we have the required manpower and skill.”

He says, “We have also upgraded all our ITI’s, Polytechnics and other institutions to align ourselves with Industry 4.0 in a very big way regarding latest manufacturing practises like AI, IoT, ML, data analytics, robotics and automation. We look to provide all possible training to each person in the state of Karnataka. We would like to cater to the country and the world and not just the state.The entire education system has been revamped and we assure you that the state of Karnataka will be the best place. The diverse, friendly cosmopolitan city with a really lovely climate can result in a great ecosystem.”

Referring to Mr. Manwani who mentioned that technology in semiconductors gets absolute very rapidly, Dr. Narayan responds that this must be encashed. He adds, “We look forward to any kind of solution from your side and would be more than happy to implement that. We extend our corporation to sectors like power, telecom, consumer electronics etc. where the manufacturing and consumption is done in India itself. We would love to see a uniform growth beyond Bangalore as well. Engineering, R&D and with many more policies, we want to focus on the fact that Industry IS a part of the government.”

Mr Rajamanickam, went on to appreciate the government of Karnataka for the support received when he started a company there. He goes on to add that his perspective is very different. He recollects the time when amidst software and chip design; a missing link like physical packaging was not only recognised but also a land near Electronic City was allocated. He thanks the government for all their effort and support shown. He reflects on the baggage that people carried in the 80s as to what India is; and the fact seen now where people are being pulled into the industry.

Amrit Manwani questioned whether Karnataka, a leader in hardware design, would look at the need of setting up a test centre/common facility centre/centre of excellence with respect to semiconductor packaging in Karnataka. He noted that this packaging centre would go a long way and serve the test tools required for test and dispatch; especially with institutions in and around that are very good at hardware design. Also, since the tools manufactured in India belong to multinationals, and are sold 10X the price.

Dr. Narayan, in response to this replied, “There is already one unit set up in Mysore City, however we will look at extending it wherever required. Excellent value addition should be done. We need to ensure that more value addition is done making it helpful for our entrepreneurs. Ensuring common facilities will help bring down the cost. We will definitely take up your suggestion and make sure the equipment is in place.”

He adds, “We are committed and dedicated, especially with the support from our Honourable Chief Minister, Basavaraj Bommaiji who is also an engineer and look forward to your support as without electronics, there is nothing that would exist. We welcome you to come and visit us and we will ensure that Karnataka will be the best place for your contributions.”

By Sharon Abhignya Katta, Technology and Content Promotions Executive, EFY


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