Kaynes' semiconductor facility in Telangana sparks controversy in Karnataka

Kaynes' semiconductor facility near Hyderabad

A war of words has erupted in Karnataka after Kaynes Technology, an electronics contract manufacturing services firm, initiated the construction of a semiconductor facility near Hyderabad on October 24.

The firm started construction for a Rs 2,800 crore outsourced semiconductor assembly and testing (OSAT) facility at Kongara Kalan near Hyderabad.

Congratulations to Kaynes Technology on holding the groundbreaking for its Semiconductor OSAT facility in Telangana yesterday

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We are confident that Telangana will be the right partner in Kaynes’ semiconductor journey.

The proposed facility will entail an investment of INR… pic.twitter.com/spoBUOcaS9

— KTR (@KTRBRS) October 25, 2023

TV Mohandas Pai, former CFO and board member of Infosys, wrote on X (formerly Twitter) on October 27: "A sad day for Karnataka. We have driven away one of our best companies from Mysuru due to lethargy and a lack of response. Why are we pushing away our industry? How will jobs be created... Karnataka should not lose out."

Sad day for Karnataka. We have driven away one of our best cos from mysore because of lethargy and lack of response, why are we driving away our industry? How will jobs come @CMofKarnataka @siddaramaiah @PriyankKharge tried. @DKShivakumar @MBPatil Karnataka should not lose out https://t.co/GXDicMdLvj

— Mohandas Pai (@TVMohandasPai) October 27, 2023

BJP Karnataka's official X account questioned Karnataka IT-BT minister Priyank Kharge, stating: "BJP turned Karnataka into an economic powerhouse, while your government has hindered growth. The economy needs a reboot."

Hello Dynast @PriyankKharge,

Investors are now playing 'Pranks' with you & your incompetent govt.

While you enjoy luxury picnics abroad, Karnataka is losing out on investments to other states.

BJP turned Karnataka into an economic powerhouse, while your govt has stalled… pic.twitter.com/wtrKcZ0pep

— BJP Karnataka (@BJP4Karnataka) October 27, 2023

Kharge fired back, saying, "Karnataka has not lost any of the proposed investments to anyone, unlike the way you did. Your tweet lists a few investments that you allowed to slip away, but I'd be happy to provide you with the complete list."

When will you jokers @BJP4Karnataka understand how the ecosystem works.

Karnataka HAS NOT lost on any of the proposed investments to anyone, like the way you did. Your tweet has a small list of investments that you let get away, I will be happy to provide you with the whole… https://t.co/o1LJdrgk9n pic.twitter.com/yUpY50yTnc

— Priyank Kharge / ಪ್ರಿಯಾಂಕ್ ಖರ್ಗೆ (@PriyankKharge) October 27, 2023

Karnataka large and medium industries minister MB Patil, in a statement, clarified that all industry-related proposals involving investments above Rs 500 crore have to be approved by a high-level committee headed by the Chief Minister.

"However, in this case, the company's proposal was approved even before the meeting and the government order was issued promptly. There was not even a minor lapse in the government's response to the company's proposal," said Patil.

"The company had discussions with the Chief Minister and their decision to go to Telangana might be due to their considerations, possibly related to expectations of more concessions," said Patil.

Congratulations to Kaynes Technology on holding the groundbreaking for its Semiconductor OSAT facility in Telangana yesterday

We are confident that Telangana will be the right partner in Kaynes’ semiconductor journey.

The proposed facility will entail an investment of INR… pic.twitter.com/spoBUOcaS9

— KTR (@KTRBRS) October 25, 2023

However, Patil emphasized that they cannot deviate from established norms when awarding concessions.

He said they maintained contact with the company even while on a business delegation in the United States.

Patil highlighted that the state has been successful in attracting investment, with proposals worth Rs 25,000 crore currently in the pipeline.