BENGALURU, India SemIndia Inc., the semiconductor manufacturing startup based in Hyderabad, plans to raise about $100 million within the next 180 days to help launch operations. It is also in talks with Wall Street hedge funds and private Asian investors.
According to a report on Wednesday (Nov. 28) in The Economic Times, the talks involve setting up an assembly, test, marking and packaging (ATMP) facility at a cost of $100 million to manufacture flip chips.
The report quoted Bob Kondamoori, managing director of Sandalwood Partners and a director on the SemIndia board, as saying about $40 million will be raised within the next two months while the remaining $60 million is collected within six months.
Sandalwood Partners now has about 7 to 8 percent equity holding in SemIndia. An initial round of funding raised $27 million from investors, including Sandalwood. Sandalwood will also invest up to $4 million in the next round of funding, which will be provided by AMD Inc.
Other investors include electronics manufacturer Flextronics of Singapore. The Indian government may also acquire equity in SemIndia as part of its policy announced earlier this year to promote semiconductor manufacturing here.
SemIndia will have to continue raising funds over the next few years in order to fund expansion. The ATMP facility was previously scheduled to go online early next year, but operations have been delayed, the Times report added.