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Telangana Seeks MeitY's Approval for Three Chip Investment Proposals

CIO Insider Team | Friday, 21 March, 2025
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Telangana waits in line seeking approval from the Ministry of Electronics and Information Technology (MeitY) for three semiconductor investment initiatives.

This development follows the state government's acquisition of approvals for three electronics manufacturing clusters (EMCs) and one common facility center (CFC) project, totaling an investment of Rs.1,778.86 crore, which includes central support of Rs.724.12 crore.

Ranjan mentioned that Advanced System in Package Technologies (ASIP) and the South Korean semiconductor firm APACT have submitted requests to the India Semiconductor Mission to establish an Outsourced Semiconductor Assembly and Test (OSAT) facility in Telangana.

This planned facility is projected to involve an investment of approximately Rs.890 crore. The investment proposal is pending the Centre's approval, along with two other applications that are under review.

The two sanctioned EMCs and one CFC project, covering 1,292.87 acres, are expected to foster a strong ecosystem for electronics manufacturing and draw additional investments into the state.

The approved initiatives comprise EMCs at E-city, Hyderabad (603.52 acres, Rs.667.6 crore), and Maheshwaram, Ranga Reddy (310.70 acres, Rs.436.97 crore), in addition to a CFC at Hyderabad Knowledge City (with an outlay of Rs.104.63 crore) and an EMC at Divitipally Village, Mahabubnagar District (377.65 acres, Rs.569.66 crore).

Meanwhile, as per MeitY data, Karnataka has also put forth 55 applications under various MeitY programs up until February this year, amounting to a total production value of Rs.183,623.31 crore and potential exports of Rs.118,953.67 crore. These applications will necessitate investments of Rs.11,313.35 crore and are anticipated to create 44,868 jobs.

This development follows the state government's acquisition of approvals for three electronics manufacturing clusters (EMCs) and one common facility center (CFC) project, totaling an investment of Rs.1,778.86 crore, which includes central support of Rs.724.12 crore.

The Production Linked Incentive (PLI) scheme for large-scale manufacturing has seen Karnataka submit six applications, representing a total production value of Rs.94,967.11 crore and potential exports of Rs.80,836.63 crore.

The state has also utilized other initiatives, such as the Production Linked Incentive (PLI) scheme for IT hardware, the Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors (SPECS), and the Modified Special Incentive Package Scheme (M-SIPS). According to data from MeitY, the 36 applications from Karnataka under M-SIPS are projected to require an investment amounting to Rs. 9311.7 crore.

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MeitY data further indicates that Karnataka has made strides in establishing electronics manufacturing clusters, with one cluster designated for an 88-acre site and four companies receiving land, leading to an investment of Rs 90 crore and the creation of 300 jobs.



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