Karnataka ready to offer 20% subsidy for semiconductor investments, says minister, seeks Centre's support

Karnataka is prepared to offer 20% subsidy support for investments in semiconductor projects if the Centre gives an equity support of 50% as it has done in Gujarat, state’s industry & infrastructure minister MB Patil said on Wednesday.

His comments came in response to Union Steel & Heavy Industry Minister’s remarks wondering if Karnataka was ready to give 20% in incentives like the western state has done.

The two senior ministers have been locked in a war of words about incentives to investments in chip making.


The southern state is seeking the same support that US chipmaker Micron Technology is getting from the Centre for its project in Gujarat. Micron has pledged the largest investment under the Indian Semiconductor Mission (ISM) of $ 2.75 billion to set up an assembly, testing, marking and packaging (ATMP) plant at Sanand.


If the Centre gives 50% equity support, the state will follow with 20% contribution. "I have confidence that Kumaraswamy will not backtrack on this," Patil said.

The industries minister stressed that the union government should adopt a uniform policy for all states and expressed hope that Kumaraswamy would recognise this. “We are questioning the central government favouring Gujarat, which is the home state of Prime Minister Narendra Modi.”

Following up his media statement with a post on X, the minister said: “Our intention is not to argue with the centre or with Kumaraswamy. There will be no politics in the development of the state. I will meet him personally and request his support in securing a semiconductor plant in Karnataka, among other things.”

He added: “CM Siddaramaiah is an expert, having presented the highest number of budgets in Karnataka. Karnataka is by no means lesser than any other state. Siddaramaiah will provide better incentives if and when needed.”