ISMC invests $3 billion, India's first fab plan finalized

According to Reuters, the government of Karnataka state in southern India said recently that the international semiconductor consortium ISMC will invest US$3 billion to build a semiconductor manufacturing fab there.

ISMC is a joint venture between Abu Dhabi's Next Orbit Ventures and Israel's Tower Semiconductor, which Intel has announced for $5.4 billion.

ISMC said it will invest in a 65-nanometer analog semiconductor fabrication plant in Mysore. ISMC has sought 150 acres of land in the Kochanahalli Industrial Estate in Mysore.

India's first semiconductor fab is expected to create more than 1,500 direct jobs and 10,000 indirect jobs, India's National Investment Promotion Department said in a tweet.

At present, ISMC and Indian conglomerate Vedanta Ltd (VDAN.NS) have applied for a $10 billion incentive plan previously proposed by Indian Prime Minister Narendra Modi to promote companies to build semiconductor and display businesses in India.

According to reports, the Vedanta conglomerate also revealed to it that it is currently in "advanced negotiations" with the western states of Gujarat and Maharashtra, as well as the southern states of Telangana, and plans to choose a company by mid-May. It is estimated that it will spend 20 billion US dollars to promote the development of the semiconductor and display industries.

India's semiconductor market is expected to grow from $15 billion in 2020 to $63 billion in 2026, the government said.