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India to take stake in fab project

Posted: 03 Nov 2005 ?? ?Print Version ?Bookmark and Share

Keywords:india? fab? semiconductor manufacturing?

The Indian government will take an equity stake in its proposed "Fab City" project, with its Department of Information Technology (DIT) expected to be the shareholder.

The government-backed project to build an Indian semiconductor fab is gaining momentum. New Delhi is surveying regional governments about water and electric facilities, and about concessions they could extend for the proposed project.

"We will put our money where our mouth is. We are looking for about 1,500 acres of land in all for the project, of which 200 acres will be for the foundry and fabrication facility," said DIT's Madhavan Nambiar.

"Fab City" is the pet project of DIT and Communications Minister Dayanidhi Maran, who wants to have at least one major Indian fabrication facility.

"India has a strong position in software development, and the government wants to see the hardware sector also grow. Here, a major gap is the lack of a fabrication facility," Nambiar said.

Karnataka state, the capital of which is Bangalore, is considered a strong candidate for the project along with neighboring Tamil Nadu and Andhra Pradesh, where work on a private fab has already started.

India is also studying Taiwan's Industrial Technology Research Institute (ITRI) to see what lessons it can learn for promoting hardware growth in India. An Indian team will visit ITRI in January. Conversely, Taiwan is considering investments in India, Nambiar said.

The Indian government also plans to launch an incubation center for electronics startups, including chip makers, here in December.

- K.C. Krishnadas

EE Times

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