I am bit pessimistic about this development. The decision which is taken by one government is never honored by the new party that comes into power. India will go to election in next couple of years and I am sure government will forget about this project.
If India is serious about this they really need to partner up to accomplish it. They could partner with an established foundry that could bring all the infrastructure, or they would have to partner with all the infrastructure partners (Equipment, EDA, Yield services, process developers, etc.) if they have a chance to pull it off.
Call me a pessimist..but I think it is too late for India to catch up on semiconductor manufacturing. The talks over establishing Fab started 4-5 years back...nothing materialized so far other than talking about the probable upcoming decisions in the conferences.
Let's lock on the date, end of 2012...we"ll review the status again and I'm sure it will be status quo.
Let us say we hear that the fab will happen by the end of 2012. Next step is to get the facilities ready, install, qual process and measurement tools, finish hiring and get to run first Si, followed by yield learning. What matters is, is there any yield. Since there is no experience in this path in India, are we expecting the fab to produce chips by 2015? If so, what type of products and design rule? Will there be any profit to make a difference!
This is too late already. Memory manufacturers are struggling, logic will probably end up at 14nm production by 2014..There is absolutely nothing India can do. Just stop these gimmicks and do something else. Sorry, it is not a frustration from my end, but there is no realistic estimate mentioned anywhere in these proposals.
The Ambani group took over the Fab City and planned a Reliance Fab, they hired some ex-fab guy to come in and do it... But all it was another land deal... can't trust them either... Reliance sold the land at a profit and left fab city in hyderabad high and dry.. thats the record....
While I am sure the issue can be resolved, you really cannot run a fab with the current (no pun intended), frequency of power outages. Even the glitching caused by switching back and forth from local generators could damage WIP.
India needs their private business leaders such as Ambanis, Tatas and Birlas to take interest in such projects. Then only such huge infrastructure projects can be successful. Otherwise it will be another government non-starter.
With the current govt riddled with a lot of corruption charges and a lot of factions opposing many of the upcoming projects ( Jaitapur Atomic power project for example) there is little hope that the FAB project will take off.