Hindustan Semiconductor Manufacturing Corporation on Wednesday announced a $4 billion investment plan for setting up a fab city in India in partnership with German technology major Infineon.
HSMC would start the project with two foundries (fabrication plant) and would later scale it up to ten foundries, a company official said.
The announcement comes less than a week after the government notified the
semiconductor policy, which gives tax sops to companies setting up fab
units. The semiconductors would be used in mobile phones, SIM cards, smart cards and automotive cards.
The cost of each foundry will be $750-850 million for a 200 mm foundry, while it may cost up to $3.2-3.5 billion to set up a 300 mm foundry under the project. Phase one of the project will build nodes from 2009 onward under the 200 mm foundry, the official said.
India's share in the global semiconductor market is negligible at present, but this project would enable the country to make a mark in production of high-tech chips, the official said.