India, Israel plan chip innovation fund

July 23, 2010 // K.C. Krishnadas

An Indian-Israeli innovation fund with an initial investment of about $2.2 million will underwrite research and development among semiconductor companies.

 The fund was created by the state government of Karnataka in southern India along with the Israeli Industry Center for Research and Development. Also known as Matimop, the Israeli government agency promotes international R&D programs between Israeli and foreign firms.

Matimop will run the joint program, and the Karnataka government is expected to increase funding for the semiconductor initiative, said Ashok Kumar Manoli, the state’s principal secretary for information technology.

Opening the fourth Embedded Systems Conference here, Manoli said the new program aims to encourage the semiconductor companies here. He said the program will be launched shortly.

Bangalore-based companies account for 80 percent of Indian chip design work. The cooperative R&D effort seeks to encourage the existing base of chip developers while nurturing design innovation, Manoli added.

The Indian government has set aside a 500-acre area in a nearby technology park to attract foreign direct investment in electronics and semiconductors. The regional government is initially targeting IC assembly, test and packaging technologies, Manoli said.

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