India plans its first commercial semiconductor fabs

The government said it will identify and support investors to set up two fabs

The Indian government has established a committee to identify technology and potential investors that could set up India's first two commercial semiconductor wafer fabs, the country’s Ministry of Communications and Information Technology said.

The committee, which is to submit its report by July 31, will also recommend the nature and size of government support to the fabs, which could range from equity participation to grants and subsidies in physical or financial terms, the ministry said in a statement on Wednesday.

The ministry put the rough cost of the two fabs at US$5 billion.

An investment of that level should be enough to pick up two second-hand fabs, said Poornima Shenoy, president of India Semiconductor Association (ISA), a trade body.

India does not currently have a commercial fab and that's been a bottleneck for the country’s electronics industry. The defense and space ministries run small fabs which mainly meet the requirements of government agencies.

It is good that the government has decided to take chip manufacturing seriously, Shenoy said.

An earlier government committee recommended, among other things, that the country set up semiconductor wafer fabs, and also give preference in government procurement to locally manufactured electronic products.

The domestic market does not require high-end, state-of-the-art fabrication capacity, said Rajiv Jain, associate director for government affairs at ISA. Most of the current demand for semiconductors in India can be met from a fab that processes 200 mm (millimeter) to 300 mm wafers, Jain added.

India has emerged as a key chip design location for a number of multinational companies including Intel and Texas Instruments.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Tags India Semiconductor AssociationregulationGovernment of IndiaComponentsgovernment

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service

Comments

Comments are now closed.

Most Popular Reviews

Follow Us

Best Deals on GoodGearGuide

Shopping.com

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Latest Jobs

Shopping.com

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?