Karnataka eyes larger stake in $300 bn electronics opportunity

The Karnataka government is stepping up efforts to attract investments across the electronics and semiconductor value chain as India’s electronics output is projected to reach $300 billion by 2026, while the domestic semiconductor market is expected to touch $64 billion.
Addressing industry leaders at Source India 2026, Manjula, Secretary to the Government, Department of Electronics, IT, Biotechnology and Science & Technology, said the state is sharpening its focus on scaling manufacturing alongside its well-established research and development ecosystem to capture a larger share of India’s fast-expanding electronics and semiconductor market.“Karnataka is not just participating in India’s electronics growth story — we are shaping it. With our strong R&D ecosystem, global engineering centres and a focused push on manufacturing, the state is ready to lead the next phase of electronics and semiconductor expansion,” she said.
Karnataka currently contributes nearly 10% of India’s industrial output and is among the country’s leading electronics-exporting states. Electronics exports from the state have crossed $4.5 billion, placing it third nationally. Bengaluru, in particular, has emerged as a key global technology hub, hosting around 500 R&D centres and nearly 100 chip-design centres.Major global players such as Intel, AMD, Qualcomm, Samsung, GE, Texas Instruments, Lam Research and Applied Materials have a strong presence in the state. Intel’s largest R&D centre outside the US and GE’s second-largest global R&D centre are both located in Bengaluru, underlining Karnataka’s importance in the global semiconductor and engineering landscape.
Outlining the government’s investment strategy, Manjula said the state is pursuing a three-pronged approach focused on liquidity, land and labour to accelerate growth in electronics and semiconductors. This includes policy support, infrastructure readiness and skilled workforce development.As part of its manufacturing push, Karnataka is developing specialised clusters across regions. These include aerospace and printed circuit board (PCB) manufacturing in Mysuru, consumer electronics manufacturing in Hubballi-Dharwad, and mobile component manufacturing in Chikkaballapur. The state is also planning mobile phone assembly and electric vehicle (EV) manufacturing clusters in and around Bengaluru.With a combination of strong R&D capabilities, global industry presence and targeted manufacturing clusters, Karnataka aims to position itself as a leading hub in India’s electronics and semiconductor growth journey.

(State Correspondent)