The state government moves to strengthen its semiconductor ambitions by allocating prime industrial land near Kempegowda International Airport, while reviewing land policies to attract global technology investments and optimise utilisation of remaining business park capacity.
The Karnataka government has approved the allocation of 140 acres of land to Applied Materials Inc at the Bengaluru Signature Business Park (BSBP), marking a significant step in the state’s push to attract global semiconductor investments. The decision was taken at a cabinet meeting held on April 30.
The land parcel, located close to Kempegowda International Airport, will be allotted on a lease-cum-sale basis at an estimated cost of ₹780 crore. According to state officials, the pricing has been aligned with prevailing guideline values, with the land valued at ₹1,288 per square foot. The allotment, however, remains subject to statutory clearances and final pricing approvals.
Strategic push for semiconductor ecosystem
The move underscores Karnataka’s ongoing efforts to position itself as a hub for semiconductor and advanced technology investments. The state has been actively promoting sectors such as chip design, research and development, and global capability centres to attract multinational players.
Officials indicated that the allocation forms part of a broader strategy to strengthen the technology ecosystem in and around Bengaluru. While details of Applied Materials’ proposed project have not yet been disclosed, the investment is expected to contribute to high-value employment and technology development in the region.
Earlier, Industries Minister MB Patil had hinted at the approval of a major semiconductor-related project during an industry event in Bengaluru, though specifics were not shared at the time.
Policy review and land monetisation plans
Alongside the land allotment, the state cabinet has also initiated a review of the land disposal framework for the Bengaluru Signature Business Park. Authorities are examining existing models, including lease-only and public-private partnership structures, to optimise the use of available land.
The government is expected to explore multiple approaches for allocating the remaining 267 acres within the park. These may include competitive bidding processes and the appointment of transaction advisors to ensure transparency and maximise value.
BSBP, spread across 407 acres near the airport, was originally conceptualised in 2008 as a large-scale business and technology hub. It is being developed under a public-private partnership model to attract global corporations and boost regional economic growth.
With this latest decision, Karnataka aims to accelerate infrastructure development and reinforce its standing as a preferred destination for global technology investments, particularly in the semiconductor space.
