Zoho-Backed Silectric to Set Up Karnataka’s First Semiconductor Plant with ₹3,425 Cr Investment

The Karnataka government has approved Silectric’s proposal, backed by zoho, to establish a semiconductor manufacturing facility at an investment of ₹3,425.6 Cr. 

Chief Minister Siddaramaiah announced that the state’s first semiconductor project will be set up at the Kochanahalli electronics manufacturing cluster (EMC) near Mysuru, creating 460 jobs. The decision was made during a State High-Level Clearance Committee (SHLCC) meeting.

Silectric aims to develop a silicon carbide-based fabrication facility along with assembly, testing, marking, and packaging (ATMP) capabilities. The company has requested 40 acres of land for the project and plans to build a complete silicon carbide manufacturing value chain, including products such as ingots, wafers, MOSFETs, and modules. 

Initially focusing on ingot production, the company will gradually expand to packaging and MOSFET manufacturing.

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Led by experienced semiconductor professionals and financially supported by Zoho, Silectric has also received backing from the electronics and IT ministry (MeitY). This project follows Zoho’s reported interest in semiconductor manufacturing, including earlier plans for a ₹3,034 Cr unit in Odisha, which CEO Sridhar Vembu clarified as still under discussion.

Karnataka has been positioning itself as a hub for electronics manufacturing allocating 234 acres for the Mysuru EMC and working on a new electronics system design and manufacturing (ESDM) policy to attract more investments. 

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This move aligns with the semiconductor industry’s growth, driven by the generative AI boom and rising demand for advanced chips. India’s semiconductor market is projected to exceed $150 Bn by 2030, supported by initiatives like the government’s production-linked incentive (PLI) scheme.

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