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The Andhra Pradesh government and SemIndia have announced the setting up of a $3-billion (Rs 13,500 crore) project to manufacture semiconductors used in computers, mobile phones and other digital devices at a 1,200-acre site near the upcoming Hyderabad international airport, 40km from the city.Two other semi conductors makers Nano Tech and Cypress Semiconductor have evinced interest in locating their bases in the Fab City and negotiations are on to woo some more semiconductor companies.Chennai, Bangalore and Hyderabad, have been hotly pursuing the project.
While work on the first phase of the SemIndia project, at an investment of $1 billion, would begin next month, the second phase would have an overall investment of $2 billion. However, within months an Assembly Test Mark Pack Plant used by chipmaker and Intel’s main rival AMD (Advanced Micro Devices) will be set up.
AMD is SemIndia’s technology partner.State chief minister Dr Y S Rajashekhara Reddy, SemIndia chairman Vinod K. Agarwal, STPI director B V Naidu, and venture capitalist Pratap Kondumuri, said this was one the largest investments ever made in the country in the technology sector and would have the potential for a spin-off effect of drawing more companies.
Government officials said this is as a first step towards India becoming a $33.6-billion semiconductor market employing about 36 lakh people by the year 2015, as projected by consultants Frost & Sullivan.
India set to become hub for assembly test mark pack facilities
India is on course to become the hub of assembly-test-mark-pack (ATMP) facilities. While existing players are set to invest huge sums to expand their operations, new players are also showing interest in setting up ATMP units. ATMP facilities led the development of semiconductor ecosystem in countries like Taiwan and it could trigger the same effects […]
Fab policy to encourage chip manufacturing has not hit targetThe government’s fab policy, intended to encourage chip manufacturing in India, has not quite hit its target. While the government has received proposals worth $6.2 billion, none are for setting up chip manufacturing. In fact, SemIndia, which had announced plans to set up a $3-billion chip-making facility in Hyderabad, has not yet submitted its proposal.
“SemIndia […]