The Hindu Business Line : SemIndia firms up funds for phase I

The promoters of SemIndia project, a $3 billion multi-phase semiconductor complex, slated to come up near Hyderabad, have got into the execution mode for the first part of the $1 billion project - a test and assembly line that would see an initial investment of $100 million.

The Chief Executive Officer and core-promoter of SemIndia, Dr Vinod K Agarwal, said the funding for the test and assembly line has been firmed up and the project would be ready within one year.

However, he refrained from divulging the names of the investors and just said that this would be through a combination of inputs from strategic investors and debt component.

Speaking to Business Line , Mr Agarwal said "the project and its promoters are hopeful that the proposed central semiconductor policy would bring in the necessary benefits for the promotion of such a flagship project in the country. With the Centre and the Information Technology and Communication Ministry in favour of such a policy, we expect this would come up soon."

The company had earlier hinted that of the $1 billion that it expects to raise for Phase I, the promoters will bring in about $500 million, through equity and debt, $250 million could potentially come in from strategic partners that includes Flextronics (with whom the company had signed up earlier this year), and the Centre about $250 million.

The State Government would also contribute in the form of land and other infrastructure.

Tech transfer partner

Asked about reports of semiconductor company Advanced Micro Devices (AMD) making an investment of about $500 million in the project, Dr Agarwal clarified that the company has signed up with them to be a technology transfer partner but there has been no commitment as yet on the quantum of funds they would invest in the project.

"We are going ahead with the test and assembly plant design and in the meantime expect the policy to come through," he said.

The company in June 2006 had signed up with Base Oxygen Corporation for supply of gases for the project. Earlier, it had also firmed up with semiconductor companies - Flextronics and AMD as strategic partners.

The services of the Singapore based Surbana, a Temasek group company, have been enlisted as master planners for this project.

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