Tech Talk | No Ifs or Buts About Karnataka’s Semicon Setback Amid Challenges and Intel-Tower Split – News18

The termination of Intel’s $5.4 billion deal to accumulate Israeli contract chipmaker Tower Semiconductor raised questions on Karnataka’s semiconductor future because the latter was alleged to play a key function in a fabrication plant. But the very fact is that the state’s chip future already went to the stage of uncertainty after the proposal was rejected.

It was reported final yr that the International Semiconductor Consortium (ISMC), a three way partnership between Next Orbit Ventures of Abu Dhabi and Tower Semiconductor, needed to arrange a semiconductor plant in Karnataka. The official announcement highlighted that the JV was trying ahead to investing $3 billion (Rs 22,900 crore) in a 65nm semiconductor fabrication plant.

However, in July, when a high central authorities official was requested concerning the standing of the semiconductor venture, the official confirmed that it was rejected with out additional mentioning the rationale behind it. So, what turned clear is earlier than the cut up between Intel and Tower occurred, the bell for the setback had already rang in Karnataka.

Now by way of the semiconductor ecosystem within the southern state, there have been a number of extra challenges that business specialists have highlighted. They consider that the operation of a semiconductor facility would wish to take into consideration the water necessities and undertake appropriate methods to minimize the impression on water assets in a state like Karnataka the place the water disaster is a critical concern.

In the area, the important thing elements impacting the method are water sourcing, water recycling and remedy, infrastructure, regulatory surroundings, provide chain and logistics in addition to environmental sustainability. So, as per the specialists, cautious planning, strategic alliances, and coordination with related events are crucial to handle these essential points.

Getting concerned with native organisations, governing organisations, and enterprise teams can help within the institution of a affluent semiconductor unit in Karnataka. Additionally, it’s believed that addressing different points like energy provide, competitors and market dynamics can actually assist overcome the challenges related to the area.

Additionally, it must be highlighted that India is just not the one nation that’s attempting to develop a semiconductor ecosystem. Some consider that since different nations, resembling China and Taiwan, have already established robust semiconductor industries, Karnataka might want to compete with these nations to draw funding and expertise.

To put together Karnataka for a robust semiconductor ecosystem, specialists consider that the federal government and personal sector collectively must spend money on training and coaching to create a talented workforce for the semiconductor business within the state.

Additionally, the state could consider forming partnerships with different nations to share data and assets which can assist Karnataka to develop its personal semiconductor business extra rapidly. Also, it will be a good suggestion for the federal government to evaluation its insurance policies to make sure that they’re supportive of the semiconductor business, one thing for which Gujarat is very praised.

However, by way of a broader image, it was additionally highlighted by specialists that establishing fabs is a distinct ball sport, as they’re exhausting to arrange and dear to run. So what any state or for that matter India wants in the mean time are Assembly, Testing, Marking and Packaging (ATMP) amenities. They consider that the nation can have essentially the most superior ATMPs, like what is going on in Gujarat, earlier than stepping into the fab sport.