The International Semiconductor Consortium ISMC was the first to take advantage of tax breaks and financial injections from the Indian government to encourage the construction of new semiconductor factories in the country.

As revealed by the government, this company, which is a partnership between Next Orbit Venturesbased in Abu Dhabi, and Tower Semiconductorfrom Israel (and soon to be owned by Intel), will invest $3,000 million in the state of Karnataka, in southern India, to set up a chip manufacturing plant.

ISMC to build semiconductor factory in India

India’s first semiconductor fab is expected to generate more than 1,500 direct jobs and 10,000 indirect jobs. ISMC and Indian conglomerate Vedanta Ltd have requested part of Prime Minister Narendra Modi’s $10 billion incentive package to encourage companies to set up semiconductor and display operations in India, the the government’s next big bet on electronics manufacturing.

Vedanta told Reuters last weekend that he was in “advanced conversationsto choose a site in mid-May. This company plans to invest 20 billion dollars in its commitment to semiconductors and displays. India’s semiconductor market is expected to reach $63 billion in 2026 from $15 billion in 2020, according to the government.