Karnataka Minister for IT/BT Priyank Kharge has made strong accusations, claiming that semiconductor projects were allocated to Gujarat and Assam due to political “clout” and “arm twisting,” despite Karnataka’s well-established ecosystem being more suited for such initiatives. Kharge’s remarks have stirred a political storm, especially at a time when India’s semiconductor mission is seen as critical to the country’s technological future and self-reliance in chip manufacturing.
Karnataka’s Strength in the Semiconductor Sector
Karnataka, particularly its capital Bengaluru, has long been regarded as the tech hub of India, with a thriving ecosystem of software, hardware, and semiconductor industries. The state boasts of a highly skilled workforce, research institutions, and a robust infrastructure that supports cutting-edge technological innovations. Companies such as Intel, Qualcomm, and Texas Instruments already have a significant presence in Bengaluru, making the city a natural choice for semiconductor investments.
In this context, Priyank Kharge’s comments reflect frustration over Karnataka being overlooked for new semiconductor projects. The state government has been actively pursuing these investments to further cement its status as a global technology hub, and many industry experts have also voiced their surprise at semiconductor manufacturing being directed to states like Gujarat and Assam, which are not traditionally known for their technological prowess.
Priyank Kharge’s Accusations
During a media interaction, Kharge alleged that the decision to allocate semiconductor projects to Gujarat and Assam was not based on merit but rather due to political pressure. “Despite having a world-class ecosystem and everything in place, Karnataka has been bypassed. Clout and arm twisting led to the decision. This is not about the best state winning—it’s about political favoritism,” Kharge stated.
The minister’s sharp words point to concerns over political influence driving investment decisions, particularly under the current central government led by the Bharatiya Janata Party (BJP). Both Gujarat and Assam are governed by the BJP, while Karnataka is ruled by the Indian National Congress, which adds a layer of political tension to Kharge’s accusations.
The semiconductor industry is crucial for India as it seeks to reduce its dependence on imports, particularly from countries like China and Taiwan. The government has launched the “India Semiconductor Mission” with the aim of boosting domestic chip production and establishing India as a key player in the global semiconductor supply chain. In this context, the stakes are high, and Kharge’s claims of favoritism have added fuel to the debate over how these projects are being allocated.
Karnataka’s Competitive Edge
Kharge emphasized Karnataka’s proven track record in handling high-tech industries and pointed out that the state already has the required infrastructure, from research and development centers to a talent pool of engineers and technologists. He argued that setting up semiconductor facilities in Karnataka would be more logical and cost-effective, given that the state has decades of experience supporting tech industries.
“Karnataka’s ecosystem is second to none. We have the talent, infrastructure, and a conducive environment for innovation. It’s baffling that despite this, the projects are going to regions that lack this readiness. Semiconductor manufacturing requires specialized talent and a robust supporting ecosystem, which Karnataka has built over years,” Kharge added.
He also mentioned that the state government had already rolled out several incentives and policy measures to attract semiconductor investments. These include tax benefits, land allocation, and subsidies to create a favorable business climate for the sector. However, Kharge suggested that these efforts had been undermined by political maneuvering at the national level.
The Decision to Favor Gujarat and Assam
The decision to establish semiconductor manufacturing units in Gujarat and Assam has been positioned by the central government as a move to distribute economic growth more evenly across the country. Gujarat, in particular, has already attracted substantial investment with the establishment of a semiconductor fab in the state. Supporters of the central government’s decision argue that it will lead to the development of new industrial hubs outside of traditional tech cities like Bengaluru and Hyderabad.
Assam, on the other hand, has historically been an underdeveloped state in terms of industrial and technological infrastructure. However, its strategic location in the northeast and proximity to East Asian markets could potentially make it an attractive location for future semiconductor projects.
Political Reactions and Industry Concerns
Priyank Kharge’s remarks have sparked reactions across the political spectrum. The BJP has refuted Kharge’s allegations, insisting that the decision was based purely on economic and logistical factors. BJP leaders argue that distributing key industries to other states aligns with Prime Minister Narendra Modi’s vision of “balanced regional development.”
Industry experts, however, have expressed mixed views. While some agree with the central government’s strategy to develop new tech hubs across India, others feel that ignoring Karnataka’s semiconductor ecosystem may lead to inefficiencies in the long run. The process of building a specialized workforce and infrastructure from scratch in Gujarat and Assam could face challenges, particularly when an already prepared ecosystem exists in Karnataka.
Priyank Kharge’s allegations of political favoritism in the allocation of semiconductor projects have brought to light the tension between regional development and leveraging existing tech ecosystems. While the central government’s strategy may be to diversify industrial growth across India, sidelining a state like Karnataka, with its proven track record and established infrastructure, raises questions about the long-term success of these semiconductor projects.
As the global demand for semiconductors continues to rise, the effectiveness of India’s semiconductor mission will depend on how well the chosen states can adapt and build the necessary capabilities. Whether Gujarat and Assam will be able to live up to expectations remains to be seen.
