sc policy..

http://www.asianage.com/?sam=2:1:235:229571&headline=Semiconductor~policy~soon:~Maran


Hyderabad, June 7: Union minister for communications and information technology, Dayanidhi Maran, said on Wednesday, that the government will be announcing its policy for the semiconductor industry in the next two weeks, even as work on India’s first semiconductor fabrication complex is expected to be launched later this month.

SemIndia Fab, the company building the project, will begin the construction of a semiconductor testing and assembly unit, at an estimated cost of $100 million, Mr Vinod Agarwal, chairman and CEO of SemIndia Fab, said. The semiconductor complex is eventually estimated to cost $3 billion.
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Mr Maran said the government was finalising the semiconductor policy keeping in mind that India could be the hub for the industry because of the increasing need for semiconductor chips in the domestic market. Asked whether the government would be investing in the equity of SemIndia Fab, Mr Maran said, "The issue of viability gap funding by the government into semiconductor companies will also be addressed by the policy."

Mr Agarwal said that the complex, spread over 1,228 acres, will have two semiconductor units, the first of which will cost $1 billion, while the second, larger, unit would cost $2 billion. Asked about the equity component of the project, which is normally 30 per cent, Mr Agarwal said that was being finalised. He said SemIndia Fab had attracted investment from Flextronics, a semiconductor manufacturer, and technical collaboration with Advance Micro Devices, the second largest semiconductor company in the world.

He said SemIndia Fab has signed up Surbana Corp of Singapore to design the masterplan for the integrated semiconductor complex. The masterplan is to be submitted by August.

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