Karnataka, Taiwan’s Allegiance Group to set up Rs 1,000-crore Industrial Technology Innovation Park

The partnership aims to expand high-tech manufacturing capacity, strengthen semiconductor supply chains and create new skilled jobs, supporting Karnataka’s long-term strategy to attract global technology investments and deepen collaboration with Taiwanese industry leaders.

The Karnataka government has signed an MoU with Taiwan-based Allegiance International Co. Ltd to develop the Indo-Taiwan Industrial Technology Innovation Park (ITIP), a major investment initiative expected to reinforce the state’s leadership in electronics and semiconductor innovation. The agreement, inked in the presence of Chief Minister Siddaramaiah and IT&BT Minister Priyank Kharge, involves a proposed investment of around Rs 1,000 crore.

Major electronics and semiconductor hub planned

The upcoming ITIP is envisioned as a specialised hub for Taiwanese firms in electronics, semiconductor manufacturing and design. Spread across a multi-year development plan, the project will house advanced manufacturing units, R&D centres and innovation clusters to support core ESDM (Electronics System Design and Manufacturing) activities.

According to the state government, the investment is expected to generate nearly 800 direct jobs over five years as multiple companies begin setting up operations within the park. The initiative aligns with Karnataka’s broader strategy to accelerate semiconductor growth and position itself as India’s leading destination for high-tech, value-added manufacturing.

Strengthening supply chains and talent development

Key elements of the MoU include establishing a world-class industrial park for Taiwanese electronics and semiconductor companies, developing a robust supply chain ecosystem for components, printed circuit boards and chip design, and introducing skill development programmes in partnership with academic institutions. The collaboration also aims to facilitate technology transfer and adoption of global best practices to enhance India’s competitiveness in advanced manufacturing.

Leadership voices back the partnership

Chief Minister Siddaramaiah described the partnership as a crucial step toward strengthening Karnataka’s status as a global innovation hub. “The ITIP will attract cutting-edge technology and investments, creating new opportunities for our youth and reinforcing India’s role in the global value chain,” he said.

IT&BT Minister Priyank Kharge emphasised Karnataka’s long-standing dominance in technology and semiconductor design. “This initiative will accelerate our efforts to build a strong electronics and semiconductor ecosystem and ensure Karnataka remains the preferred destination for global investors,” he noted.

Allegiance Group vice president Lawrence Chen added that the collaboration will help Taiwanese companies expand operations in India while contributing to the growth of the semiconductor and electronics ecosystem.