The Hindu Business Line : Guidelines soon on semiconductor policy

Interested cos
HSMC-Infineon duo to invest $4 billion in a fab unit
Moser Baer setting up $250–million thin film solar fab in Noida
Reliance Industries mulls entry into manufacture of semiconductors

Our Bureau

New Delhi, Sept. 10 In a move that could open floodgates of investment and secure India’s position on the global semiconductor map, the Government is all set to issue guidelines for semiconductor manufacturing policy this week.

Chip-making units

The ‘Special Incentive Package Scheme’ to encourage investments for setting up semiconductor fabrication and other micro and nano technology manufacturing industries was announced by the Government in February this year, and already scores of companies including SemIndia and Hindustan Semiconductor Manufacturing Corporation (HSMC) have announced their plans to set up chip-making units in the country.

HSMC has teamed up with Infineon Technologies for licensing technology and proposes to invest $4 billion in a fabrication unit; while SemIndia Inc, a consortium of Indian technologists, has said it would invest $3 billion in a wafer fab in India to make chips using technology licensed from Advanced Micro Devices Inc (AMD).

In addition, Moser Baer has announced its plans to establish a thin film solar fab in Noida SEZ at an investment of $250 million, while California-headquartered Signet Solar is gearing up to invest $2 billion to manufacture solar photovoltaic modules in India.

Reliance Industries, too, is considering a foray into the manufacture of semiconductors. According to sources, the company is planning to invest up to $6 billion over five years to set up a facility to manufacture not just silicon chips used in devices such as mobile phones and computers, but also liquid crystal display units and solar photovoltaic cells.

Intel claims refuted

According to a senior official in Department of IT, at least 4-5 companies have evinced interest in setting up fab in India. Refuting claims by Intel Corporation that India had missed the opportunity to attract the company’s manufacturing units due to delay in formulation of semiconductor policy, the official pointed out: “Intel was never in discussion with us for a fab, and so the question of Government being late in bringing out the semiconductor policy does not arise.”

The official also said that Intel had approached the Government in 2005 with a proposal for an Assembly Test Mark and Pack (ATMP) unit — which requires a significantly lower level of investment compared to a fab — and had also sought $50 million upfront subsidy for the same.

“We had ruled out the possibility of any subsidy that time, and there are no ongoing talks with Intel on the issue now,” he said.