India's fab venture to start production in '06
By Mark LaPedus
Silicon Strategies
11/26/2004, 5:19 PM ET
SAN JOSE, Calif. — India's first fab company is expected to break ground on what is believed to be an 8-inch plant in February of 2005, with production slated for July of 2006, according to a report from CyberMedia News on Friday (Nov. 26).
Earlier this month, it was disclosed that 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 the fab. The fab would be called India Semiconductor Manufacturing Co. (ISMC). Hyderabad is best known for software development, but already hosts a small, privately-owned wafer fab owned by Teamasia Lakhi Semiconductors (see Nov. 16 story).
ISMC would come up in two phases. The first phase involves an investment of $600 million, according to the report. Of that, some $160 million would be in the form of equity, $80 million from Indian companies, and $80 million from foreign investors, according to the report.
Of the $80 million equity from the Indian players, $40 million would come from India's Reliance, Tata and others, according to the report.
Intellect of Seoul has also put up a proposal to the government of Andhra Pradesh to grant $150 million that would go in to the fab setup, as well as an additional $40 million by the central government, the report said.
"Phase II would be set up with an investment of $2.5 billion after two years of setting up of the first phase. The proposed fab would thus manufacture chips, wafers that would cater to the consumer electronic market," it added. It's unclear if Phase II involves a 300-mm fab.
ISMC would break ground in February 2005. Production is slated for July 2006. The fab venture could employ 10,000 workers.
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