Mysuru is set to see substantial growth in semiconductor manufacturing, with recent agreements to establish production facilities at the Kochanahalli Industrial Area, close to Nanjangud. The Karnataka Industrial Area Development Board (KIADB) has acquired 234 acres in Kochanahalli, designating 140 acres specifically for the development of an Electronics Manufacturing Cluster (EMC), known as Semiconductor Park.
A Japan-based company has agreed to set up a semiconductor chip manufacturing unit in Kadakola, Mysuru, with a formal agreement to be signed at the Global Investors Meet in Bengaluru in February 2025. This development follows earlier challenges in securing a similar project. The new facility is anticipated to create jobs and attract further investment in high-tech manufacturing to the region.
Local companies, including Mysuru-based Kaynes Technology and Germany-based Wurth Technology, have secured land within the Semiconductor Park. Kaynes Technology, which already operates in Telangana, has been allotted 20 acres, while Wurth Technology has received 10 acres. This land allocation is part of an ongoing government effort to encourage investment in semiconductor manufacturing, supported by central government subsidies and state incentives.
The market value for the land designated for semiconductor plants stands at Rs. 1.16 crore per acre. The Karnataka government has also indicated its willingness to provide a 20 percent subsidy if the central government offers a 50 percent subsidy, a structure similar to that provided in Gujarat to incentivize semiconductor manufacturing investments.
Basic infrastructure, including roads and drainage, is already in place at the Semiconductor Park, with a few remaining infrastructure tasks nearing completion. The Karnataka government has imposed strict regulations to maintain the land’s use exclusively for semiconductor-related activities, preventing repurposing for non-industrial uses.
Future industrial expansion could include a proposal by a Hyderabad-based industrialist for 49 acres in Kochanahalli, committing an investment of Rs. 800 crore, which may potentially create up to 5,000 jobs.