‘Taiwanese City' to come up near Bangalore

The next iPad could be built out of Karnataka. Taiwanese companies are planning to set up their electronics hardware manufacturing plants in the state.

Taiwanese companies and investors have approached the Chief Minister, Mr D.V. Sadananda Gowda, for setting up electronics hardware manufacturing units at Narsapura, Kolar and in and around Devanahalli.

“We have shown 1,400 acres in Narsapur in Kolar and about 700 acres in Devanahalli which we already have in our possession,” Mr Gowda told  “So far, about 15 companies have shown keen interest in investing in hardware units,” he added.

Integrated township

Also, there are plans to create a ‘Taiwanese City' that would be a 70:30 integrated township, where 30 per cent is being reserved for residential and creating other amenities for hardware companies. The balance will be offered to different electronics industries.

The move to set up electronics hardware manufacturing units, hardware industry watchers feel, would enable head honchos to stay in the country and supervise operations on a daily basis.

This is a part of the Indian government's ongoing push to bring hardware manufacturers to India after failing to secure investments in mid-2000.

Start-up devices

“This, typically, would open up opportunities for start-up device manufacturers. “A start-up company cannot afford to order million of chipsets, with the costs associated with it and if there is a plant in India, it would work out better in terms of logistics and cost negotiations,” said Dr Praveen Vishakantaiah, President – Intel India.

Agreeing with this view, Mr Will Poole, co-chairman, NComputing, said, “India needs a manufacturing eco-system that would put in the global manufacturing map.”

Fab facility

Last year, the Union Government invited expressions of interest from technology providers and investors for setting up a semiconductor fabrication plant in the country to meet fast-growing demand in the electronics sector.

“India has seen a huge IT revolution due to setting up tech parks and it would give Indian manufacturers a big boost,” said Dr Adwaita Menon, Associate Director, of IDC.

A semiconductor fabrication plant is a factory where devices such as integrated circuits are manufactured. Demand for electronics hardware in India currently stands at about $45 billion and is expected to cross $400 billion by 2020.

Out of this, demand for semiconductors is expected to amount to nearly $50 billion, it said. In order to promote semiconductor manufacturing, the government has already allowed 100 per cent foreign direct investment under the automatic route.