The Hindu Business Line : Fab City decision by this month

THE "chosen destination" for Fab City, the country's first semiconductor manufacturing facility, will be known within the month. "We are at a stage where we have to select one of the three short-listed locations for the Fab City. We are working towards announcing the chosen destination within this month," said Dr Vinod K Aggarwal, Chairman of the Board, President and CEO, SemIndia. The body has approached an international advisory board, he added.

SemIndia is a body of NRIs who are investing $3 billion to set up Fab City. This facility is expected to provide employment to 20,000 people. It will have a testing, assembly and packing unit, IC design houses, TFT panel fabs, solar cell fabs and R&D facilities, besides a university and training institution. Bangalore, Chennai and Hyderabad are the three "shortlisted" locations.

SemIndia also announced it would set up a semiconductor test and packing plant at Fab City. The Assembly-Test-Mark-Pack (ATMP) plant will be set up during the year. SemIndia is investing $100-200 million in the ATMP.

"Wafer manufacturing is the core of the hardware industry and must be given highest priority. Setting up the ATMP demonstrates SemIndia's commitment to eventually bring wafer manufacturing to India," said Mr Rajendra Khare, Chairman, India Semiconductor Association. At the end of 2005, India's semiconductor market stood at a little over $ 1 billion.