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 email@example.com 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.
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.
If you don't see any sarcasm in this posting then you are either pretending to be blind or still living in the days of the British Raj in the same way as the co-author. India does not "boast" to be the third largest scientific base in the world but it is a "FACT". At least the Govt. is directing it's energies in the right direction (instead of waging wars in every corner of the world) was my point to the authors.
elPresidente: By your reasoning(?), there are too many illegals in California so it wouldn't be possible to run a 'clean' business there, let alone a 'clean' room! Of course, the bureaucrats in California this yet the illegals keep coming!
PS: there are many clean rooms in California but many have long since stopped operating; we all know where they run full swing now a days...
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 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.
I agree. But most of us have a vision (or say desire) to have world class fab in India. As far as Tata, Birla and Ambani goes...i think they only take up the opportunity when government gives free land or money to them.
You also have a vision (actually more like "desire") to marry a girl, but you killed them all off before they could be born, so now you can't find one. There's fantasy, then there's reality, whether it's having a fab or having a wife. You are late to the party on both and have to pay a huge price to make it real.
Since U.S. and Europe companies moving away from fab and manufacturing. It is simply cheaper, more revenue, and less hardworks.
This is where Japan, Taiwan, Korea companies bringing their values.
U.S. will feel the pain and pay the price later on down the road with their mentality and strategy.
There will be many unemployed Americans with nowhere else to go.
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 .
The world is shedding fabs, not building them, due to the outrageous upfront cost and the obsolescence two years down the road. If the bureaucrats are too stupid to see this, they are dumb enough to worry about mosquitoes, which you can see. even for "strategic" military purposes, you can inventory a bazillion finished wafers for the cost of a modern fab.
Do they want to build a museum or a fab? It makes sense to use the existing fabs around the world instead of trying to build a new one, which may become 'productive' in 2020, maybe 2050 given the 'hurdles'. It is sheer nonsense just like aspiring for a F1 circuit in India :o It doesnt help/benefit anyone, definitely not the Govt.
You point out to the "hurdles" correctly. But, what I dont understand is the disproportionate and overwheling cynicism. Why does everyone sound gloomy about attempts beyond mediocrity? Is it the nation that makes the citizens or the citizens who make the nation?
Are you suggesting India should stop launching satellites because there are already too many of them in the space ? I find you logic pretty wague. India needs fab because it has to mark its presence in the world of semiconductor. We all know what happened to Japanese fab during Tsuname, all of them were shut down. Its good to diversify fab location so that we dont encounter those shutdowns again.
India has a lot of engineering talent. I think they have many opportunities to help their country become a better place and grow to become a great country. I don't think building a fab is the best use of the talent.
I would suggest that if it made economic sense then a fab would be built, otherwise it could be an expensive project. On the other hand, it would have been nice to have alternate fab sources as insurance against earthquakes prone Japan given the significant numbers of fabs there. Perhaps, some automakers would be interested in setting up fabs in India as a hedge against natural or man made disasters? Just a though.
The new agency is not chartered to help set up many fabs. It would be a strategic step in the technology ecosystem of the country to have at least one semiconductor wafer fab. facility. It will boost the semiconductor design/electronics design community too. I agree there is a sense of dis-belief and bias to the article, but Indian Govt. and its policies have long been too farcical and one would expect such skepticism from even the most neutral observers.
After recent earthquakes in Japan , they must be planning to derisk future Semiconductor production by shifting some of the fabs out of Japan . Indian government should approach top Japanese Semiconductor manufacturers to relocate some of their fabs to India . This will be a win-win situation for India and Japan . India will not start from scratch for their fabs and Japan will find a place for its fab which is less earthquake prone. Additionally , Japan can try to get a big share of USD50 billion Indian Semiconductor market being projected.
@Atul excellent idea. I totally agree with your opinion. I would not be surprised 15 years down the line most of the fabs would operate from India (if indian govt is serious about semiconductor growth). We all know how IT industry grew in India. India has got lof of engineering talent, all that is needed is will to implement the project.
India is geographically a big country and it is possible to identify areas which are less prone to earthquake.In fact even Taiwan fabs like TSMC,UMC are also in earthquake prone zone and even they can move some production to India.
The chance of new fab in disaster-prone zone is still very high. Earthquake threat from north and tsunami threat from south. It cannot be used as good justification, maybe lower cost can, but there you can't beat China.
Building a fab is one thing. Running it is a whole new beast. India does not have enough chip engineers and technicians who specialise in process engineering, lithography, yield analysis, package development et al. Not to forget the kind of management expertise required to keep a fab operating at optimum efficiency. India should continue concentrating on becoming a centre of excellence for chip designs.
Fabs Going Nowhere in India. Like many major projects in India, they wasted so much time, resources,efforts, one delay after another, and
These turning point projects in India ended up in the hands of incompetent people with strong connections.
The India Semiconductor Association (ISA) is a disgrace to India along with their credibility. Everybody made little money but nothing accomplished.
Building fabs and expertise are complex with huge challenges. It takes some time and right investment with a right people who believe and share their vision. ISA loved to hear sugarcoated solutions with promises. As a result, most of them fail from the beginning. Assume that ISA getting to the next level, some money goes into project will disappear. India will never have a solid project at the end. Vendors and partners will get sue.
Nobody wants to set up fab in India anymore.
But there has been a great diaspora of Indian engineers and experts. Across all the chip companies of the world I would expect there are more than a few of Indian origin. It may only take a handful with experience of working in fabs to bring the skills back to India and start training workers.
I would expect that at least some of the skilled engineers that Abu Dhabi is intent on training will come from India. And they may end up working in a wafer fab in Abu Dhabi.
So why not believe something similar can be achieved in India.
The Indian government is up to no good and wants to hide some evil things, that they'd like to make in silicon, from the Chinese. Indians can hire only Indians - the rest of the world have Chinese eyes in EVERY fab. There is no other sane reason than an insane motive.
As far as the postings here go, if you have a short penis, a fab won't fix it. Neither will "marking" your territory by lifting your leg up, especially when you are downwind from your goal.
Pity you and your childhood fantasies - guess your mama never told you that posting Washington's picture does not really make you "elPresidente". So typical of losers - if you cannot win with words, use foul language.
And haven't you heard "Size does not matter" unless you are a huge Ron Jeremy fan.
India is a huge Electronics market for all kind of things like Consumer ,Networking ,Storage ,Telecom, Defense etc with almost zero local manufacturing . Business needs will force majority of these to be manufactured locally and that means more than USD20 billion worth Semiconductor too . It is not necessary that Indian fabs should be started and run by Indians alone and that is the reason govt is looking for partners . Additionally , as Peter suggested requisite talent is already available with ethnic Indian working globally and it is very much possible to bring them back on something which is very promising .