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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: robert b furman who wrote (12306)	12/3/2004 12:52:49 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 25522

India seen as one of last frontiers for new fabs Silicon Strategies 12/03/2004, 11:18 AM ET SAN JOSE, Calif. — Will India become the next powerhouse in semiconductor manufacturing? At present, India is far behind China and other Asian nations in terms of semiconductor manufacturing. India currently lacks the capital, infrastructure and experience to become a fab or foundry powerhouse -- at least in the near term, according to analysts. Recent announcements, however, indicate that India will finally fulfill its potential and build a few large-scale semiconductor fabs. Despite the firm foothold India has established in chip design, a lack of semiconductor manufacturing persists. But the market holds tremendous growth potential both for exports and for the billion-strong domestic market, according to Frost & Sullivan (see June 23, 2003 story). India is also one of the last frontiers for new fabs. "I think it's no different from China, where there are more than a billion people and hundreds of million of low-cost workers," said Paul Leming, an analyst with Princeton Tech Research. "There are also going to be semiconductor fabs in India." At present, there are a total of 10 wafer fabs in India, said Christian Gregor Dieseldorff, an analyst with Strategic Marketing Associates (Santa Cruz, Calif.), a market research firm that specializes in tracking fabs. "These are smaller to medium-sized fabs for 3-, 4- and 6-inch wafers, mainly for logic and discrete production," Dieseldorff said. India's only major VLSI fabrication facility is Semiconductor Complex Ltd. (SCL). SCL, founded in the Indian city of Chandigarh in 1983, began production in 1984 based on a technical pact with American Microsystems Inc. using its 5-micron CMOS technology. SCL eventually shifted down as low as 0.8 micron for technologies like EEPROM. It has also developed and made chips for telecom, industrial and mil uses. But the tide could be turning for India's chip industry, based on a pair of recent announcements. 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). 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 (see Nov. 26 story). Philips Semiconductors is considering plans to set up a wafer fab in India, according to a CyberMedia report, which quoted an executive of Philips' Indian subsidiary, Philips India Ltd., as its source (see Nov. 29 story). If ISMC makes good on its promise, "it will be the first 8-inch fab we have on record in India," Dieseldorff said. "We also hear that Philips plans a fab in India, but it is looking for JV partner." The proposed fab projects could also change the chip-production dynamics in Asia. In the 1970s, Japan emerged in semiconductors, followed by Korea, Taiwan, Singapore, and Malaysia. Now, China is a hotbed of fab activity. Is India the next stop on the fab tour? "All I know is that the situation can change quickly," Dieseldorff said. "Once someone starts (in India), it triggers more focus from the equipment and material vendors and provides more attention for the infrastructure. This all leads to a change in attitude for many."