Bengaluru, Nov 17 (KNN) The International Semiconductor Consortium's (ISMC's) has proposed to set up a USD 3 billion fab facility in Karnataka, said a report in Mint.

The report said that if the proposed facility is approved by the centre, the construction will begin as early as February 2023.

The ISMC will make 40-65 nanometre analog chips which will cater to "defence and auto sectors" and to some other sectors, the report added.

"We will probably become the first state in India to have a semiconductor fab. ISMC has the technology and the capability. Subject to the central government’s approval, we hope to see work starting on this plant from February," Karnataka Minister for Information Technology, Electronics, and Skills Development, CN Ashwath Narayan, was quoted as saying by Mint.

In a bid to promote chip manufacturing in India, the central government had announced subsidies of up to 50 per cent of the project costs for semiconductor manufacturers under its Rs 76,000 crore Production-linked Incentive (PLI) scheme in 2021.

ISMC, which is a joint venture between UAE's Next Orbit Ventures and Israel's Tower Semiconductor, will be among the three consortia shortlisted by the Centre for incentives. Tower Semiconductor was acquired by Intel Inc in February.

Foxconn and Vedanta earlier this year announced setting up a semiconductor facility in Ahmedabad. Singapore's IGSS Ventures will also set up a USD 3.2 billion semiconductor park in Tamil Nadu.  (KNN Bureau)