Global chip giants IBM and STMicroelectronics have revealed plans to invest $8bn for the proposed construction of two semiconductor wafer fabrication (FAB) manufacturing facilities in India, together with their domestic partners.
The proposals have been approved by the Government of India, and the wo projects will be executed through respective consortia of IBM and STMicroelectronics.
As per the government approved concessions, the first consortium of IBM together with Jaiprakash Associates and Israeli firm Tower Jazz would build a FAB facility in Greater Noida, near Delhi.
The facility would use advanced CMOS technology, while would have a monthly production capacity of 40,000 wafers of 300 mm size.
Another facility would be built by a consortium of Franco-Italian chip maker ST Microelectronics together with Hindustan Semiconductor Manufacturing and Malaysia's Silterra.
Proposed for construction at Prantij, near Gandhinagar, Gujarat, the second facility will have a capacity of producing 40,000 wafers per month of 300 mm size.
India Minister of Communications & Information Technology Kapil Sibal said that the move would help set up a critical pillar required to promote Electronics System Design and Manufacturing in the country.
"The Semiconductor Wafer FABs when set up will stimulate the flow of capital and technology, create employment opportunities, help higher value addition in the electronic products manufactured in the country, reduce dependence on imports and lead toinnovation," Sibal said
"The proposed FABs will create direct employment of about 22,000 and indirect employment of about one lakh."
Global semiconductor market is expected to grow 3% by the end of 2013 and reach $298bn, according to a new report from ABI Research.