All initiatives in the past decade have fizzled out. Unless the State pours in capital and provides land, water and electricity this would not take-off. And the State has other priorities than setting up a Fab and rightly so. I am quite skeptical if this would materialize. I think a more feasible option is to be to boost electronics assembly. Its has been predicted that by 2020-2025 India's electronics import will exceed Oil import. That is very scary.
@ the designers and product developers in West. Guys emerging markets (esp. the GIGANTIC yet under-penetrated market in India) are real and an unfolding opportunity I am sure if the electronic eco-system develops in India it would benefit others elsewhere. It is not a zero-sum game.
Whether it is Hyd or Blore or Chennai, doesn't matter. Welcome to India. :)
@iniewski- I agree with you to some extent [though not fully] regarding the economic feasibility. Nevertheless, I believe that "Tower' will capitalise on early bird's offer and with multiple entries - the fabs in India will be 'not just feasible but more economical'.