Bangalore: Karnataka on Thursday made a strong bid to outsmart Andhra Pradesh and Tamil Nadu and bag a project of SemIndia-AMD Inc. to set up a $ 3-billion (Rs. 15,000-crore) plant to manufacture silicon chips (wafer fabrication plant, or fab). The Government has given its consent to facilitate the plant by providing 1,500 acres of land, free water and uninterrupted power supply besides a slew of infrastructure and financial concessions.

The decision follows SemIndia chief Vinod Agarwal's meeting with Chief Minister N. Dharam Singh on Wednesday.

Besides free water supply, the Government will ensure a minimum of 60 Kvh of power and offer a maximum tax subsidy of Rs. 500 crores over a 10-year period, at the rate of Rs. 50 crores per annum.

SemIndia had announced plans to invest $ 3 billion in a chip-making plant in the country with technology licensed from U.S.-based chip-maker Advanced Micro Devices Inc. (AMD) to create customised products for the Indian market and bring down chip prices. The State Cabinet, which met on Thursday, took a quick decision to beat other strong contenders such as Hyderabad and Chennai.

Briefing presspersons, Information Minister B. Shivaram said Karnataka will compete with the two States for locating the plant in or around Bangalore. K. Ratna Prabha, Secretary, IT & Communications, Andhra Pradesh Government, told The Hindu : "We have asked SemIndia-AMD to give us their wish list. The State Government will match what other States are offering."

The Karnataka Government is looking for land between Bangalore and Mysore for establishing the plant. Thandya in Nanjangud is also being considered.

A fab city is expected to generate 20,000 jobs and give India a share of the global chip market.

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