The country’s first semiconductor plant is to be established in Mysuru with an investment of ₹22,900 crore ($3 billion). The project is expected to be a gamechanger for the region’s growth and give a fillip to connectivity, which is expected to attract more investment.
Israeli firm ISMC Analog Fab Pvt. Ltd. has signed an MoU with the Government of Karnataka for the project. The firm has sought 150 acres of land at Koochanahalli near Thandya on the Mysuru-Nanjangud road.
Officials involved with the negotiations and signing of the MoU said the project will help expedite connectivity factors as it will play a significant role in luring more such investment. This, in turn, will create more jobs and change the economic profile of Mysuru.
Mysuru MP Pratap Simha expects the ongoing Bengaluru-Mysuru Expressway Corridor, expansion of Mysuru airport and introduction of faster and additional trains to spur industrial development in the region.
‘’The reason I am pushing these three projects on a war footing is that the infrastructure will bring about a major shift in the economic activity in Mysuru, and propel its economy and industrialisation,” said Mr. Simha. So far, request for funds for the airport project were being questioned, but with this investment, the expansion plan cannot be postponed. The government has already released ₹319 crore to procure land and kickstart the work.
The semiconductor plant is expected to generate 1,500 high-tech and high-calibre jobs, and about 10,000 ancillary jobs, according to K.S. Sudheer, General Manager, Karnataka Digital Economy Mission, Mysuru Cluster. “It will transform the way Mysuru is going to perform economically, with cascading impact on other parameters as well,” he added.
‘’Semiconductor is the core component of electronics. Once we have the semiconductor fabrication plant in Mysuru, it is akin to having the engines of electronic and digital economy in Mysuru. Other ancillary units will follow suit, and we don’t have to push for them,” he said.
This includes testing facilities. Setting up a single testing unit costs up to ₹150 crore, which means additional investment and jobs, Mr. Sudheer added. Packaging and embedded technology industries will get a fillip, and the existing units in Mysuru will have to ramp up their capabilities.
‘’This one big-ticket investment of ₹22,900 crore ($3 billion) has the potential to attract ₹80,000 crore ($11 billion) to Mysuru in the coming years,” Mr. Sudheer said.
However, there are concerns whether Mysuru alone can produce the required manpower. There is speculation that this could result in emergence of new technical training and teaching institutions in the region.
“We need more industrially focused courses and academic institutions. The demand itself may fuel additional investment in the educational sector with thrust on centres of excellence to train graduates,” says Dr. Pradeep Manjunath, Training and Placement Officer, Sri Jayachamarajendra College of Engineering, Mysuru.
All this is expected to have a bearing on the existing infrastructure of Mysuru. Hence, pending projects, including the peripheral ring road and Haleunduwadi drinking water project, could be fast-tracked.