The Hindu Business Line : ISMC woos Indian equity partners

INDIAN Semiconductor Manufacturing Company (ISMC), now in the process of finalising plans for a mega fab near here with a total outlay of $2.5 million (Rs 1,125 crore), is in parleys with the Central Government for equity participation to infuse about $40 million through grant and with other major corporations such as Reliance and the Tata Group.

The core promoter of the project, Dr P. June Min, Chairman of Intellect Inc, said that the consortium will soon firm up $600 million investment for the phase one of the project.

It is to come up in a 50-acre site near the international airport near Shamshabad.

Speaking to newspersons on the sidelines of the e-hardware summit here on Friday, Dr Min said: "We are in the process of entering into a memorandum of understanding with the Andhra Pradesh Government to finalise the land deal and other services and related infrastructure."

He added: "By early next year, we will complete the financial closure and initiate work."

Dr Min also said that the company was in talks with companies including LG, Samsung and Toyota Motor for possible supply of semiconductors from this new facility.

"It is expected to be operational within 18 months of the zero date and sport refurbished equipment."

The phase one building would be about the size of a football ground 180 m by 136 m and 24 m high without any columns, Dr Min said.

It would cater to about 80 per cent of the global electronics industry having the capability to manufacture 30,000 wafers per month of eight inches priced at about $65 now.

With the expansion, ISMC would be able to manufacture high-end wafers priced at about $600 for the global marketplace, he added.