The Hindu Business Line : NeST Group to set up VLSI design centre

NEST Group, a Kerala-based information technology company, plans a big foray into semiconductor design and development, envisaging the setting up of a manufacturing foundry for memory chips at an investment of a billion dollars.

The Rs 600-crore diversified electronics group will set up a 200-seat VLSI (very large scale integration) design centre in association with a Japanese chipmaker in the first phase of this plan, said Dr Javad Hassan, its Chairman.

"The design centre will come up by January 2006," Dr Hassan said here at a press conference. He declined to name the Japanese company that is partnering with NeST in the project.

In the second phase that will begin about a year-and-a-half later, a testing facility will be set up. This will be followed by the setting up of the foundry for manufacturing of the memory chips, Dr Hassan said.

"Hopefully all these will happen by 2008 end," he said. NeST plans to pump in a billion dollar into its proposed semiconductor venture, which the company believes would propel it into the `bigger league of global players.'

Asked how he would raise the funds for the project, Dr Hassan said mobilising capital would not be a problem for the group. "There is plenty of money available," he said. A statement from the group said investors have already been identified from Japan and the West Asia.

However, some of the problem areas for the venture are the availability of uninterrupted quality power and de-ionised water that is a prerequisite for a chip-making foundry.

Dr Hassan said the thinking within the group now is to invest in a power and water project to address these issues. Using seawater after proper desalination and de-ionisation is one plan now being considered.

The exploding market for mobile phones and the evolution of handsets to mini-computers will create a huge demand for memory chips within India itself.

The NeST group is also expanding its operations into planar lightwave circuits (optical chips) for broadband communication applications, according to Mr N. Jehangir, Managing Director.

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