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The Government's call for a dialogue with global technology providers as well as investors for semiconductor fabs has evoked ‘interest' from companies such as Bharat Electronics Ltd, ITI, IBM, and Israel-headquartered foundry Tower Jazz.
This is a preliminary round to gauge the interest level of companies, assess the technology proposed and quantum of investments involved in such projects.
The high-level empowered committee (tasked with promoting semiconductor manufacturing in India and suggesting suitable incentives for the same) comprising prominent members such as Mr Sam Pitroda will now start a dialogue with various players to find out what policy support can make such investments viable.
The policy modalities, including the quantum of subsidies, will be finalised after discussion with players.
“The high-level empowered committee held its second meeting here on August 5 to discuss the preliminary responses that have been received over the last few weeks,” sources said.
Players such as IBM, ST Microelectronics and Infineon have expressed interest in offering their technologies (as technology provider) to actual investors or manufacturers who come in.
On the other hand, Tower Jazz – which manufactures integrated circuits for over 150 global customers – is keen to build an Advanced Specialty Fab, sources said. Tower Jazz currently has two fabs in Israel, and one each in the US and Japan, according to its Web site.
Meanwhile, in its preliminary Expression of Interest, ITI has pointed out that it is backed by resources – a large manufacturing set-up, land and technical manpower and funding support from Government for technology acquisition – all of which is favourable for setting up a fab.
In June, the Government had invited technology providers and investors to submit a preliminary EoI for setting up of semiconductor fabs in the country.
It asked companies to send details, technology experience including alliances, technology proposed, manufacturing capacity reports and quantum of investment involved (for proposed project).
Unlike last time, when the Government outlined a full package of incentives (the 2007 Special Incentive Package Scheme or SIPS) and only then asked companies to submit proposals, this time around the approach is more consultative.
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