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First Semiconductor Plant Soon!
Techtree News Staff, Jun 08, 2006 1808 hrs ISTThe foundation stone has been laid for Fab City, the country's first semiconductor fabrication plant worth $3 billion, in Andhra Pradesh.
The foundation stone has been laid for Fab City, the country's first semiconductor fabrication plant worth $3 billion, in Andhra Pradesh.
About a year ago, SemIndia, a consortium of non resident Indians (NRIs), had approached the Indian government to set up a semiconductor park, and after intense competition among the three southern states, Karnataka, Andhra Pradesh, and Tamil Nadu, Andhra Pradesh finally managed to bag the project.
Fab City will come up on a 1,200 acres plot of land at Tukkuguda near the upcoming international airport, about 20km from Hyderabad. The first phase of development will see an assembly and testing unit costing around $100m, the second phase will see an investment of about $1bn towards manufacture of semiconductor chips, and the third and final phase will have approximately $2bn going towards development of more sophisticated chips.
The foundation stone was laid by the Chief Minister of Andhra Pradesh, Y S Rajasekhara Reddy, in the presence of Union Minister for Communications and Information Technology, Dayanidhi Maran, and Chairman and CEO of SemIndia, Vinod Agarwal.
Speaking at the occasion, Dayanidhi Maran said that Fab City will be given a Special Economic Zone (SEZ) status, and that the $3bn project will be funded by $1bn being raised as equity, and $2bn as debt. Maran said of the $1bn equity, $250m each will come from the Government of India and strategic partners, while the remaining $500m will be contributed by private equity investors.
Maran said that the expected annual capacity of the first phase of Fab City is around 240,000 wafers, with each wafer having hundreds of chips. Maran added that the assembly and testing unit will have the capacity to make nearly 25m chips a year.
Maran revealed that the Centre will shortly come out with a comprehensive policy for encouraging the semiconductor industry, and that the policy will include provision of incentives and special packages. Maran said that a draft policy had already been prepared, after consulting industry representatives and potential investors.
Saying that the semiconductor industry is a relatively new introduction to the Indian economy, Maran admitted that there was a delay in finalizing the policy relating to this sector.
About a year ago, SemIndia, a consortium of non resident Indians (NRIs), had approached the Indian government to set up a semiconductor park, and after intense competition among the three southern states, Karnataka, Andhra Pradesh, and Tamil Nadu, Andhra Pradesh finally managed to bag the project.
Fab City will come up on a 1,200 acres plot of land at Tukkuguda near the upcoming international airport, about 20km from Hyderabad. The first phase of development will see an assembly and testing unit costing around $100m, the second phase will see an investment of about $1bn towards manufacture of semiconductor chips, and the third and final phase will have approximately $2bn going towards development of more sophisticated chips.
The foundation stone was laid by the Chief Minister of Andhra Pradesh, Y S Rajasekhara Reddy, in the presence of Union Minister for Communications and Information Technology, Dayanidhi Maran, and Chairman and CEO of SemIndia, Vinod Agarwal.
Speaking at the occasion, Dayanidhi Maran said that Fab City will be given a Special Economic Zone (SEZ) status, and that the $3bn project will be funded by $1bn being raised as equity, and $2bn as debt. Maran said of the $1bn equity, $250m each will come from the Government of India and strategic partners, while the remaining $500m will be contributed by private equity investors.
Maran said that the expected annual capacity of the first phase of Fab City is around 240,000 wafers, with each wafer having hundreds of chips. Maran added that the assembly and testing unit will have the capacity to make nearly 25m chips a year.
Maran revealed that the Centre will shortly come out with a comprehensive policy for encouraging the semiconductor industry, and that the policy will include provision of incentives and special packages. Maran said that a draft policy had already been prepared, after consulting industry representatives and potential investors.
Saying that the semiconductor industry is a relatively new introduction to the Indian economy, Maran admitted that there was a delay in finalizing the policy relating to this sector.
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Nagendra Prasad
,chennai, on Jun 27, 2006 10:22 AM
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Nagendra Prasad
,chennai, on Jun 27, 2006 10:21 AM
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