Taiwan's Allegiance Group has announced a significant investment of ₹1,000 Crores to establish an India-Taiwan Industrial Park (ITIP) in Karnataka.

This industrial park is designed to focus primarily on electronics and semiconductor manufacturing, sectors that are critical to India's ambitions of becoming a global hub for advanced technology production.

The ITIP aims to draw cutting-edge technologies and investments, thereby creating new opportunities for employment, especially among the youth. The creation of 800 direct jobs is expected over the next five years through the setup of electronics and semiconductor firms within the park. This development is strategically poised to strengthen Karnataka’s position within the global value chain for these technologically intensive industries.

Chief Minister Siddaramaiah highlighted that this initiative aligns with the state government's vision to transform Karnataka into a centre for advanced manufacturing. This investment complements other recent moves, such as Praxair India’s commitment to invest ₹200 Crores in the state’s industrial gases and related manufacturing sector over the coming three years.

The memorandum of understanding (MoU) for this project was signed by IT/BT director Rahul Sharanappa Sankanur and Allegiance Group vice president Lawrence Chen. This formal agreement marks a collaborative effort to leverage Taiwanese expertise in manufacturing, research and development, and innovation within the Indian industrial context.

IT/BT minister Priyank Kharge emphasised that the project will deepen business and manufacturing ties between Indian and Taiwanese companies. It is expected to foster a robust supply chain ecosystem that includes components, printed circuit boards (PCBs), and chip design.

This ecosystem will facilitate technology transfer and the adoption of global best practices, contributing significantly to enhancing India’s competitiveness in electronics manufacturing.

Lawrence Chen confirmed that the ITIP will act as a catalyst for Taiwanese firms looking to expand their footprint in India. The park will be central to nurturing a semiconductor and electronics ecosystem that places India as a key player in these advanced sectors.

Over the last two years, the Karnataka government has signed more than 115 memorandums covering ₹6.57 lakh crore in investments, reflecting a sustained push to attract industry-leading companies. The state already houses major industrial players such as TATA Motors, Hindustan Aeronautics Limited (HAL), and Bosch, establishing Karnataka as a preferred destination for manufacturing excellence.

This new development underlines the growing strategic partnership between India and Taiwan, particularly in high-tech manufacturing sectors that are crucial for future economic growth and technological self-reliance.

The industrial park is poised to be a major step forward in advancing India’s semiconductor ambitions and creating a thriving industrial ecosystem in Karnataka.

Agencies