Priyank says ‘clout’ and ‘arm twisting’ led to semicons going to Gujarat and Assam, even though Karnataka had ecosystem

Fierce war of words between Assam CM and Priyank Kharge over the allocation of semiconductor manufacturing units

Karnataka IT/BT Minister Priyank Kharge has said that semiconductor units are coming up in Gujarat and Assam because of their “political clout” and “arm twisting” rather than any strong technological or research ecosystem the States had.

Of the five semiconductor manufacturing units that are coming up in the country, four are in Gujarat, and one is in Assam, even when these states do not have the right ecosystem, skillsets or innovative environment unlike Karnataka, Mr. Kharge said last week in New Delhi, while participating in a roadshow to promote Bengaluru Tech Summit. This has triggered a war of words between the two.

In response, Assam Chief Minister Himanta Biswa Sarma hit back saying, “Once again, Congress shows its true colours by opposing Assam’s growth. A Karnataka Minister claims that Assam has no right to host a semiconductor industry.” Mr. Kharge later took to X, questioning why his defence of Karnataka’s interests was being framed as anti-Assam.

Other industries

Mr. Kharge also criticised Mr. Sarma’s handling of other industries in Assam, asking why the State’s tea and paper mills had shut down and whether the government had provided undue subsidies to certain companies. He suggested that Assam needed to improve its skill base before claiming to be a hub for the semiconductor industry. “Stop pleasing your political masters and start skilling the State and get investments based on your strengths so that more people are employed,’‘ Mr. Kharge posted on X. In response, Mr. Sarma claimed the region has become a significant centre for the semiconductor industry.

When asked about the spat between Karnataka and Assam, Mr. Kharge told The Hindu that he has been expressing his frustration over the lack of a level playing field for Karnataka in the semiconductor sector. The State contributed over 10% to India’s electronics manufacturing output, yet, it was being sidelined in favour of other states, he lamented. “Of the five semicon manufacturing units, four are in Gujarat, and one is in Assam, but they don’t have an ecosystem of skills there. They don’t have an ecosystem of research there. They don’t have incubation units. They don’t have a system of innovations,’‘ he explained.

‘’When 70% of the chip designing talent lies in Karnataka, I don’t understand why the centre wants to push other states that are not equipped at this moment for this industry by using political clout. That is unfair. Political clout is different from capability,’‘ Mr. Kharge said.

SIM approved projects

It may be recalled that the India Semiconductor Mission (ISM) has recently approved five semiconductor projects (cumulatively worth ₹1.52 lakh crore) which would receive central and State government subsidies under the programme for the development of semiconductors and display manufacturing ecosystem in the country with a total outlay of ₹76,000 crore.

These projects include: Micron Technology, Tata Electronics-PSMC, CG Power, and Kaynes Technology establishing chip units in Gujarat and Tata Semiconductor Assembly and Test Pvt Ltd (TSAT) setting up ₹27,000 crore semicon unit in Morigaon, Assam. Karnataka, seen as the tech flag bearer, did not receive any project.

Published - October 04, 2024 08:36 am IST