LONDON – The so-called Empowered Committee, set up by the Indian government to get the country into chip manufacturing, has prepared an advertisement inviting potential technology providers and financial investors to make a preliminary expression of interest in setting up semiconductor wafer fabs in India.
Those interested have four weeks to send an email to firstname.lastname@example.org including a profile of the investor consortium, the technology experience, the technology, product and manufacturing proposals and how much money they need and how much they intend to spend.
The advert points out that the Indian government has multi-billion dollar projects to provide 3G, WiMax and 4G access to 600,000 villages around the country and to provide 100G broadband to 20,000 colleges and research institutes.
It adds that India has a strong semiconductor design infrastructure that works on the design of nearly 2,000 chips each year and which employs more than 20,000 engineers engaged in various aspects of chip design and verification. The advert claims it that the total of VLSI design, board and systems hardware design plus embedded software development created a market that was worth $6.5 billion in 2009 and that will be worth $10.6 billion in 2012.
The advert also boasts that India possesses the third largest scientific and technical base in the world with 400 universities producing 200,000 engineering graduates every year.
The Empowered Committee, set up in April, is chartered to help set up at least two wafer fabs at a cost of about $5 billion. Along with identifying technologies and potential investors, the committee will recommend the level of government support for projects and the mix of grants and subsidies. The panel's recommendations are scheduled to be delivered to the Indian government by July 31.
Two earlier commercial initiatives, SemIndia and Hindustan Semiconductor Manufacturing Corp. failed to materialize. As yet there is no indication as to whether the Indian government has any preferred locations where it wants wafer fabs to be built.
The IT agency announced in April that it was considering two fab plans: either a new fab with established technology or acquiring an existing fab and relocating it here. It also is considering taking an equity stake in an integrated device manufacturer (IDM) that would then be prepared to set up an India facility. This would have similarities to the steps being taken by Abu Dhabi where a sovereign wealth fund has the controlling interest in Globalfoundries Inc. (Sunnyvale, Calif.).
India’s $45 billion electronics market is expected to reach $400 billion by 2020, which could translate into $50 billion in domestic chip demand.
Full foreign direct investment is allowed in Indian fabs, and the government is developing a policy that would give preference to for domestically-produced electronics procured by government agencies. Along with financial incentives, the government would help provide fab infrastructure.
The India Semiconductor Association (ISA) praised the agency’s proposal, but called for the panel reviewing proposals to provide more details. The initiative will build on previous efforts, said ISA president Poornima Shenoy.
Meanwhile, a report by the Hindustan Times said card maker Sandisk is considering whether to create an assembly unit here for digital storage products. SanDisk, which has a design center here, could not be reached for comment.
This article stinks of sarcasm and a negative bias towards Indian semiconductor industry. If the authors do not believe in what they are posting then why bother unless they want to be the electronics community's version of a tabloid. There's no denying that the Indian efforts in establishing fabs is a quagmire of bureaucracy and poor planning but I am sure they did not approach EEtimes to market their idea.
Well said. I've never considered EET anything but an industry tabloid -- and this isn't their first or only "journalism" piece to qualify them for the tabloid class. Maybe someday they'll even start selling themselves at grocery store checkout counters.
The article does shows a smack of sarcasm but its the way a country wants to go about fabs. The authors as an individual would have sometime in their life too would have made an attempt to learn something and surely people would have mocked at them. This is precisely what is happening with India, it is learning new technologies and creating a market. Make no mistake the many companies from your country will be more than willing and queuing up to set up their shop once this is achieved.
Secondly, I do not know understand what mosquitoes got to do with setting up a cleanroom. Mosquitoes are a problem anywhere - whether its India or America or any part of world.
I don't see any sarcasm, but I sense a deep sense of hurt in you. That no fabs did set up in the Fab City in Hyderabad and any where else is the cause of that hurt? I saw that ad in the Economic Times and I am very skeptical of any serious replies. There will be dubious characters trying to make a fast buck. If any fab comes up, we should all cheer. Till then lets wait and see.
I do not understand the need for Indian Govt to seek to set up a fab in India. When the world trend is for Fab-less design. India can as well do without a fab. So many foundries exist today worldwide that India is better off using their capacities and concentrate more on design where India has a huge qualified manpower and design expertise. If there is a sufficient pull the private industry giants like Tata, Birla and Ambani have sufficient financial muscle and project execution skills to set up such Fabs in India. It is definitely not the Indian government's cup of tea.
we have thousands of electronics engineers comming out each year ,and it is a dream of hundreads of engineers like me who are intrested in backend to actually work in the FAB unit . its a good move by the government , the only resource missing till date to setup a FAB was governments will. now with governments will clearly showcased i feel this will materialise .
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