India sets up panel to identify semiconductor fab technology, investors

The government today announced the setting up of an empowered committee for identifying technology and investors for setting up two semiconductor wafer fabrication (Fab) facilities in the country.

The empowered committee has adviser to prime minister on public information, infrastructure and innovation, chairman of National Manufacturing Competitiveness Council (NMCC), secretary to the department of expenditure and member (industry) of the Planning Commission as members, while M J Zarabi, former CMD of Semiconductor Complex Ltd (SCL) is the technical expert and secretary, DIT its member convener. The empowered committee may co-opt any other experts.

The rough order of magnitude (ROM) of investment for the two wafer fabs - Fab-1 and Fab-2 - is estimated to be around Rs25,000 crore ($5 billion). The exact level of government support for the will be finalised after negotiations.

The semiconductor wafer fabs will have a catalytic impact on development of downstream and upstream products, including ancillaries. It would have sizable impact on the development of IT/ITeS sector, particularly in very large scale integration (VLSI) design software, solutions and services. It will also boost innovation and R&D, especially in the area of semiconductors and related areas.

It will help generate employment of the order of about 30 million (direct and indirect) by 2020 across various levels of competencies.

The empowered committee will identify technology and potential investors for establishment of semiconductor wafer fabs, and thereafter ascertain their interest in setting up of semiconductor fab facilities in the country.