Kerala is stepping up its ambitions in the semiconductor sector, unveiling a strategy to position the state as a global hub for semiconductor manufacturing and innovation. The initiative marks one of the state’s most significant technology driven growth plans, as it seeks to capitalise on India’s rapidly expanding semiconductor ecosystem.
In a statement shared on the official Kerala IT Facebook page, the state government said its objective is to transform Kerala into a major player in India’s semiconductor revolution, describing the sector as the state’s “next big technological leap.”
The government believes Kerala has several inherent strengths that could help it attract semiconductor investments. These include a highly skilled and technology savvy workforce, a mature and investor friendly IT ecosystem, and access to natural resources considered important for semiconductor manufacturing.
To strengthen its strategy, Kerala plans to draw lessons from global semiconductor leaders such as Taiwan, South Korea and the United States. According to the government, the roadmap has also been shaped by insights gathered during the recent Global Semiconductor Conference held in New Delhi.
The state has constituted a high level advisory group to guide its semiconductor strategy. The initiative is being driven in coordination with former senior IAS officers Madhavan Nambiar and Aruna Sundararajan, KSIDC Chairman Balagopal, Industries Secretary A.P.M. Mohammed Hanish, IT Secretary Sambasiva Rao and semiconductor expert P. Rajamanikyam.
The government said the next phase of the project will be fast tracked over the coming days as it works to attract global semiconductor companies and investors.
Kerala joins semiconductor race
Kerala’s announcement comes at a time when other states are competing aggressively to attract semiconductor investments. Gujarat has already secured multiple semiconductor fabrication and assembly projects, while Tamil Nadu, Karnataka, Uttar Pradesh and Assam have announced policies and incentives to build semiconductor ecosystems.
With the Union Government expanding support under the India Semiconductor Mission and the recently approved Semicon 2.0 programme, state governments are increasingly positioning themselves to attract investments across chip design, semiconductor manufacturing, assembly, testing, packaging, research and supply chain development.
Leveraging existing technology strengths
Unlike states focusing primarily on large scale fabrication facilities, Kerala already possesses a strong foundation in information technology, electronics design and research. Institutions such as Technopark, C-DAC, Indian Institute of Space Science and Technology (IIST), Indian Institute of Information Technology and Management Kerala (IIITM-K), and engineering universities provide a steady pipeline of skilled talent that could support semiconductor design, embedded systems and research activities.
Industry experts believe Kerala could initially focus on semiconductor design services, electronic design automation, research and development, compound semiconductors, and advanced semiconductor packaging before expanding into larger manufacturing projects.
Investment Focus
By aligning with international best practices and leveraging India’s growing semiconductor policy support, Kerala aims to create an ecosystem capable of attracting global technology companies, generating high value employment and strengthening the state’s position in advanced electronics manufacturing.
While the government has not yet announced specific investment commitments or timelines, the formation of a high level strategy group indicates that Kerala intends to accelerate policy formulation and industry engagement in the coming months.
As global semiconductor companies continue diversifying their manufacturing and design operations, Kerala is seeking to position itself as the country’s next destination for semiconductor innovation and investment.
Source: Article based on the statement shared on the official Kerala IT Facebook Page
