Korean firm plans $1.6 billion Indian wafer fab
By K.C.Krishnadas
11/16/2004 6:24 AM EST
BANGALORE, India — India's first major semiconductor wafer fabrication facility is set to be established in the southern city of Hyderabad.
South Korean Intellect Inc. has approached the regional government of Andhra Pradesh with a plan to build a fab at a total cost of US$1.6 billion. The fab would be called India Semiconductor Manufacturing Co. Hyderabad is best known for software development, but already hosts a small, privately-owned wafer fab owned by Teamasia Lakhi Semiconductors.
The fab plan was disclosed by Rajasekhara Reddy, chief minister of Andhra Pradesh, during the inauguration of the Microsoft campus in Hyderabad. Reddy said negotations between the Korean company and the government were now in the final stages.
Little is know about Intellect, which is said to be backed by June Min, a former senior executive from Daewoo Corp. It has already set up half a dozen fabs in Taiwan and China.
Investments will be in two rounds, with about US$600 million in the first phase and the remaining US$1 billion later. If funded, the fab would easily be the largest investment in India's hardware sector.
The company is seeking 50 acres for the fab, which would be developed in partnership with other hardware, communication and financial companies. Construction is expected to start sometime in 2005 with the first chips shipping in 2006.
Details about the chip technologies to be used were not disclosed, but they would be aimed at the mass market, said C.K. Veeresh, joint director of the Andhra Pradesh communications and information technology department. The facility will employ at least 10,000 workers.
India's fst-growing wireless services market has fueled discussions about the need for fabs to manufacture SIM cards for mobile phones. Smart cards for identity cards, driving licenses and banking and financial applications are other possible applications. |
