BENGALURU, India Details of India's new semiconductor policy such as the extent of tax breaks and subsidies being offered to potential investors have yet to emerge, observers said.
Investors are awaiting guidelines on how to proceed with setting up Indian manufacturing plants and the mechanism for doing so. Still, the chip policy announced Thursday (Feb. 22) has revived the interest among companies thought to be interested in establishing fabs here.
Growing interest is likely to result in announcements of new India projects in the coming weeks, delayed only because the policy guidelines remain sketchy.
Industry sources said it may take a few weeks for details to emerge. Some expect the first chips made in India to appear as early as 2009, probably for wireless handsets.
Meanwhile, industry sources said an unidentified global chip maker will likely enter into a joint venture with a group of expatriate Indian engineers to launch manufacturing facilities in India. (AMD Inc. has already announced a technology pact with SemIndia Inc. for a semiconductor manufacturing facility in Hyderabad.)
At least two more semiconductor manufacturing facilities are expected to be announced in the next few weeks, according to Raj Khare, chairman, India Semiconductor Association. ISA expects the deals will result in a combined total of up to $10 billion in manufacturing here.
The Economic Times of New Delhi reported that Samsung, Freescale, Motorola, Intel, Infineon, STMicrorelectronics and Toshiba are among the possible investors in a $4.5 billion manufacturing facility being set up by the Hindustan Semiconductor Manufacturing Corp. (HSMC).
HSMC is expected to establish a fabrication complex that will include several foundries to be built by HSMC, another report said. The fabs will 200- and 300-mm wafer lines.
Pradip K. Dutta, managing director of Synopsys (India) said several overseas companies have previously expressed interest in setting up semiconductor manufacturing facilities in India. "I expect some concrete announcements in the new few weeks," Dutta said.