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

Join the PC World newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags regulationIndia Semiconductor AssociationGovernment 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
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?