Karnataka is enhancing its manufacturing goals as India's electronics output is anticipated to hit $300 billion by 2026 and the local semiconductor market is projected to reach $64 billion.

At Source India 2026 in Bengaluru, Dr. Manjula, Secretary to the Government in the Department of Electronics, IT, Biotechnology, and Science & Technology of Karnataka, highlighted the State’s effort to enhance its presence in the electronics and semiconductor value chain.

“Karnataka is not only a participant in India’s electronics growth narrative; we are influencing it.” "Thanks to our robust R&D ecosystem, worldwide engineering centers, and a dedicated effort in manufacturing, the State is prepared to spearhead the upcoming phase of electronics and semiconductor growth,” she stated.

Karnataka presently contributes approximately 10 percent of India’s industrial production and stands as one of the nation’s top electronics exporters, with exports surpassing $4.5 billion — placing it third in the country. The State is home to around 500 research and development centers and nearly 100 chip design facilities, including those run by Intel, AMD, Qualcomm, Samsung, GE, Texas Instruments, Lam Research, and Applied Materials.

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Intel’s biggest R&D center outside the U.S. and GE’s second-biggest global R&D facility are situated in Karnataka, reflecting the State’s enduring design and engineering prowess.

The government now seeks to enhance this R&D depth with expanded manufacturing capabilities.

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Dr. Manjula outlined Karnataka’s approach as being based on three key pillars: liquidity, land, and labor.
Regarding policy support, the State has launched the Special Incentives Scheme for the ESDM sector (2025–2030) and provides tailored packages for investments over Rs.500 crore.

The talent ecosystem of the State continues to be a key driver. Karnataka boasts 235 engineering colleges, 325 polytechnics, and 1,777 Industrial Training Institutes (ITIs), backed by establishments like the Indian Institute of Science.

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It additionally accommodates approximately 30 Government Tool Room and Training Centres along with a Semiconductor Fabless Accelerator Lab established in partnership with the India Electronics and Semiconductor Association to support chip design start-ups.