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India IC policy pulls in $16B manufacturing proposals

Posted: 07 Apr 2008 ?? ?Print Version ?Bookmark and Share

Keywords:India chip policy? IC manufacturing? fab?

Electronics and chipmakers in India are looking to work with the government to pull together proposals for establishing a chip fab, an LCD plant and solar manufacturing facilities.

The Indian government has so far received seven investment proposals worth over $16 billion. The proposals come in response to an incentive package for semiconductor and electronics manufacturing announced last year. However, SemIndia, which is has the biggest IC manufacturing plan announced, has yet to submit a proposal.

Proposals received so far cover the manufacture of polysilicon, single- and multicrystalline ingots, wafers, solar cells, photovoltaic modules, LCDs, SoC and IC assembly, testing and packaging.

Reliance Industries, one of India's largest industrial groups, has proposed two facilities. One is for wafer fabrication, testing and packaging. Investment would total $4.6 billion over 10 years and would employ 4,000 workers. Reliance is seeking state subsidies totaling more than over $800 million.

The second is for a $2.9 billion plant in western India to manufacture polysilicon, ingots, wafers and PV modules. The plant would employ 11,000 workers, according to the federal ministry of communications and information technology. Reliance is seeking state subsidies totaling about $600 million.

Meanwhile, Videocon Industries Ltd has proposed a $2 billion LCD/TFT manufacturing plant in western India with annual capacity of up to 9 million panels. Videocon wants $500 million in subsidies to set up the LCD plant.

Moser Baer PV Technologies India plans to make silicon cells, modules and thin-film concentrators near Chennai in southern India with an investment totaling $1.5 billion. It is seeking subsidies totaling about $600 million.

Titan Energy Systems and KSK Energy Ventures also submitted proposals to manufacture solar energy components.

Signet Solar, founded by EDA veteran Prabhu Goel, said it plans to invest nearly $2.5 billion to make PV and related products with an annual capacity of 1GW. Signet has requested subsidies of about $500 million.

Under its special incentive package scheme, the Indian government would provide 20 percent of capital expenditures during the first 10 years for technology projects located in special economic zones. It would provide 25 percent of capital expenditures for projects outside of these zones. Incentives include financial subsidies and equity participation.

- K.C. Krishnadas
EE Times

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