Yes, Prabhakar you are right - it is never too late to start something. Sure, India missed this bus almost 20 years back - there was a time when Seagate was exploring the viability of setting up a manufacturing unit ( time frame - something about 20-25 years ago) in the southern state of Kerala but it came to naught.
Sure, the govt officials have their own personal agenda and things do not move the way they should but at least there is a beginning... lets hope it takes off and if the multinational companies involved in the consortia put their foot down ( and accelerate) the process, we can have working fabs in a couple of years and two years will just fly... maybe processes would change but India being a huge market, there would still be demand for the older ones
3-4bil (US$ ?) buys logic tool capacity at 45nm that would fit in a small fab about 18, 000m2 cleanroom. That assumes zero cost of construction or infrastructure. Probably 2bil alone in older generation litho tools. although landmark, this doesn't seem to be even comparable commitment in terms of current generation fabs.
I will say it is still worth to have the fabs even though it may be late . It is never too late to start something which have a good impact in the future . India's first nuclear submarine has come into existance almost 40 years after the project was conceived but still it is relevant in the strategic terms and benefits to the nation.
Not sure if it is too late for this to happen, if we are talking about a timeline in terms of "a couple of decades" to be successful. This should have happenned a long time ago. I read somewhere about the semiconductor import bill was $8.2 Billion in 2012 and it was predicted by the Department of Electronics and Information Technology to grow by 20% every year. What those guys had been doing since last five years...did they not foresee this issue then? I had been hearing the Fab story for more than last three years. The process is frustratingly slow and unfortunately the foresight is missing (or the willingness to foresee). I don't know where the rest of the world will be in the next two decades when the Fabs in India would hopefully reap the benefits. Atleast I will retire. :)
Genuine question! Who will buy chips? But system level company are ready to buy chips and complete ecosystem will be established. Design house are functioning with profit, assembly unit are also ready to establish. Most important is market which all know about import capacity of India. Export of chips are still opportunity with lesser cost due to relatively cheaper manufacturing cost.
Whatever be the current odds, this initiative by Indian Govt will definitely benefit the Indian economy in the long run.
Like the nuclear reactor facilities which are successfully operating now for the last 40 years or so, the fabs project will also be successful and the government will be prudent enough to loacte these facilities away from the traffic conjestion zones .
Who buys these chips?
If the idea is to reduce chip imports who are the systems OEMs rounding out the picture? Are they serving a significant market now?
Didn't India try this at the systems level long ago unsuccessfully?
Its a big risk to set up fab companies in bangalore. The city is already struggling with infrastructure issues, almost all the roads in Bangalore have so big potholes that your cars one tire is on road and other can fall inside hole. The city already has hut the headlines in terms of mishandlingof garbage. Its called as garbage city. The city municipal authorities are still to make concrete plan and implementationof solid waste management. How the silicon waste be handled?
Problem with Indian political system or societyas whole is they hate to plan and take too much in the plate.
India is not China, where right things would be done and can be done. Just having huge population and being a big market doesn't mean you can have the semicnductor fab. It requires strict discipline and proper planning. In India everything changes for political mileage and political parties can go to any extreme fir their own benefits.
Cities like Bangalore, delhi and Mumbai are already struggling to breathe, this will be too much on plate.