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Date: 22-09-13

Two India semiconductor fabs approved by Government

Setting up of two semiconductor fabrication facilities are approved by government of India. Each one of this facility is proposed by a team of companies.

The one fab which is going to be established near Noida, U.P. is proposed by Jayprakash associates in partnership with IBM and ToweJazz. Technology nodes proposed by this group are 90, 65 and 45 nm nodes in Phase I, 28 nm node in Phase II with the option of establishing a 22 nm node in Phase III.

The other fab that is going to come up near Gandhinagar, Gujarath is proposed by Hindustan Semiconductor Manufacturing Corporation in partnership with ST Microelectronics and Silterra. Technology nodes proposed by this group are 90, 65 and 45 nm nodes in Phase I and 45, 28 and 22 nm nodes in Phase II.

Government is still open for any further proposals from other leading companies to establish chip fab in India.

Comment by industry executives on chip fab in India:

“Setting up of such a high value manufacturing industry as semiconductor chip fabrication will have truly transformative effect, on the overall Electronics industry. This will have a very strong multiplier effect that will result in major strides forward in the value generated from all sectors within the semiconductor ecosystem. While we eagerly await the formal news of the cabinet approval via the appropriate government sources, the historic significance of this approval will be felt for many years to come. Manufacturing in India will soon witness a new frontier.” said Aninda Moitra, President & Managing Director, Applied Materials India.

Applauding fab approval by Government, manufacturers' Association of Information Technology (MAIT) releases a statement saying “Considering the fact that IT Hardware industry is highly depended upon imports, homegrown chip would help strengthen the electronics ecosystem in the country. The decision will promote manufacturing of indigenously designed and manufactured chips and help the country to reduce dependence on imports. This would also help the existing IT hardware manufacturing to obtain essential IT components at a much lesser cost”.

Mr. PVG Menon, President, IESA said “Semi conductor industry is 100% import based and last year alone India consumed semiconductors worth $ 8 billion. Now in order to be self sufficient, FAB will play an essential role towards this as it can give India the technological edge in the global markets.”

On the latest investment proposals received recently by the government in the ESDM sector, Dr. Ajay Kumar, Joint Secretary, Department of Electronics and Information Technology, Ministry of Communication & Information said “As always, India offers a great opportunity in electronics system design and manufacturing. With the country looking to be an economic powerhouse on the global platform, sectors like ESDM will play a vital role. We have received investment offers to the tune of around 11,000 crores in this sector. The main focus this year will be on Mobile Handset Manufacturing, Automotive Manufacturing, Consumer electronics and LED manufacturing as these are the areas of interest in the market,” at the inaugural ceremony of the trade expo, electronica India 2013 and productronica India 2013, which concluded recently in New Delhi.

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