Semiconductor Policy Released. Billions of Dollars to Flow into India.
<?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />India is an acclaimed leader in chip design, with more than 100 Fab-less companies in operation. However, India never had a Chip Foundry making it fully dependent on imports. Chip Foundries require very large investments and world over they are supported by Govts. by providing capital and fiscal incentives.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
The Central Govt., after a whole year of delay, has finally unveiled the much awaited Semi Conductor Policy which has been widely hailed as “path breaking.” It has been compared to the economic liberalization program together with the STPI scheme, which opened up software development business, allowing it to explode into gigantic proportions, in 15 years. The Semiconductor Policy is expected to now kick start Semiconductor Fabrication in India, in a big way.
The Industry has welcomed the policy and seem to be excited. Dr. Vinod Agarwal, Mr. Bob Kondamuri, Mr. Rajendra Agarwal, Deven Mehta and other key figures in the Semiconductor scene, have been ecstatic about the windfall concessions, that the Govt. has offered to the Industry.
SemIndia ( a consortium led Mr. Vinod Agarwal with technology tie up with AMD) with its proposed Fabcity, has been the front runner. The Fabcity located along Srisailam Highway beside the new International Airport at Hyderabad, already has in-principle SEZ status. Since the entire land required for the project has been acquired, the project should get notified as SEZ soon. AP Govt. has also doled out additional incentives on power and water. This enables Fabcity Project to get both 20% Capital Incentives as well as SEZ related operational concessions.
The terrific look and feel of the Srisailam Highway, the flat developed land for Fabcity with fine roads, street lighting etc and proximity to the new International Airport, together with the above incentives would act as investment magnet and result in fast and furious physical development.
Many are unaware, that in addition to SemIndia and Nanotech, there are others looking eagerly to put up semiconductor foundries.
Can AP bag all these upcoming Projects and pull them into Fabcity creating a vibrant Tech City of International scale?SemIndia promoted by Vinod Agarwal - US$ 3 Billion (12” Fab) NSTI promoted by Dr. Jun Min - US$ 0.6 Billion (8” Fab)HSMC promoted by Deven Mehta- US$ 4.5 Billion (8” Fab) - Location to be confirmed
IEMC promoted by Rajendra Agarwal–US$ 3.0 Billion (12” Fab)–Location to be confirmed.
That is possible US$ 11 Billion into Srisailam Highway, if Govt of AP is successful in attracting HSMC and IEMC, in addition to the SemIndia and NTSI.Apart from this, Intel, Qualcom and others have been waiting for the Policy to be released before announcing their plans. So don’t be surprised if more big ticket investments are announced in the coming weeks. All this points to the future of Srisailam Highway. It is at the right point to turn into a Tech City of unparalleled richness. A city on its own!
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