A day after questioning the necessity of foreign investments in Gujarat, Union Minister for Steel and Heavy Industries HD Kumaraswamy clarified that semiconductors are a “strategic industry” crucial for job creation. On Saturday, Kumaraswamy said his recent comments regarding subsidies for Micron Technology, a US-based semiconductor manufacturer, had been misunderstood and were not directed at any particular state.
“Bringing the semiconductor sector to India is strategic; we need it,” he said after a row erupted over his remarks. He stressed the sector’s importance for technological advancement and economic growth and the parallel need to create jobs in related small-scale industries.
“I have been misquoted. I have not mentioned any state. Why has my statement been picked up like this? I have to be very cautious in the future,” he told reporters.
He also posted on X, stating, “Semiconductor is a strategic industry. It is a basic requirement for electronics and automobile manufacturing. Both these sectors generate lots of employment. I greatly appreciate the semiconductor-related initiatives taken by @PMOIndia and will work towards fulfilling them through my ministry.”
Kumaraswamy had questioned the subsidies allocated to Micron Technology, which is establishing a $2.5 billion unit in Gujarat. According to a newspaper, he raised concerns that the company might receive Rs 3.2 crore in subsidies per job created, estimating that the new unit could create around 5,000 jobs.
“The new manufacturing unit will generate about 5,000 jobs. For this, we are giving them $2 billion in subsidies. If you calculate, that’s 70% of the company’s total investment,” the former Karnataka CM was quoted as saying by The Time of India.
“I asked officials how justifiable it is to allocate such a significant amount of funds. Conversely, there are smallscale industries… In Peenya (an industrial estate in Bengaluru), there are small-scale industries. How many lakh jobs have they created? What benefits have we provided to them? I am contemplating these matters, such as how to safeguard the nation’s wealth,” he added.
Kumaraswamy, a JD(S) leader, won the Mandya constituency in Karnataka, defeating Congress candidate Venkataramane Gowda, also known as Star Chandru. Kumaraswamy secured over 851,000 votes, winning by a margin of more than 284,000 votes. Gowda, his nearest rival, got 567,000 votes.
