Karnataka to spend Rs 714.49 crore to develop 4 clusters to attract chip makers

Companies such as Carbon Electronics, Astr Defense, NanoPix Integrated Software, Neuorigami, Gopalan Aerospace, Krypton Solutions and Wide Mobility had expressed interest in investing in the state, the minister said.

Kharge, however, said the state could find it difficult to attract semiconductor firms. "We managed to mobilise investments worth Rs 70,000 crore in the sector after visiting multiple countries, but one phone call from New Delhi would force them to invest in Gujarat," he said, pointing a finger at the Centre. Gujarat is the home state of Prime Minister Narendra Modi.

Also, read: Kumaraswamy says semiconductor sector vital for India's strategy; statement on job creation misquoted

State Minister for Large and Medium Industries MB Patil agreed Kharge. "Many companies are investing in Gujarat because the Union government is giving them 50 percent incentives besides 30 percent incentives from the state government, so the companies need to bear only 20 percent of the cost,” Patil said.

"If the incentives were given to Karnataka as well, it would help us the state get investment from the semiconductor industry. I also brought the attention of the Union Minister of Heavy Industries, HD Kumaraswamy, to this issue," Patil said.