P June Min, one of the main promoters of Nano-Tech Silicon India (NTSI) Limited has informed that NTSI will set up a mega semi conductor fab facility soon in Andhra Pradesh, India. June Min, said, "We chose Hyderabad for setting up the fab unit as it had the best weather and the state government had assured uninterrupted water and power supply and infrastructure. Technology partners may be finalized in 60 days."
Andhra Pradesh Chief Minister Dr YS Rajashekar Reddy performed the ground breaking ceremony for the Fab unit. The facility is coming up in the sprawling 350-acres Hardware Technology Park, near the new International Airport, Shamshabad, in Andhra Pradesh, the project is slated to be ready within the next 15 to 18 months from now. It is said that this mega fab unit will be developed in two phases (phase I, a logic semiconductor fab will incur investments of $600 million and will develop wafers with a capacity of 30,000 units per month. Phase II is expected to incur investments of $2.5 billion). Dr Reddy, stated, "If everything goes well, we should have our first fab in the next 15 months from now."
NTSI expects that the first phase will take 15 months and will develop low cost chipset solutions with system manufacturing partners for color TVs, DVD, LCD driver modules, telephone handsets, mobile phones, computers and automotive ICs. With a capacity of making 30,000 chips a month, the unit will manufacture eight-inch fabs. A total of six fab units are planned at the Park. The unit will require 1,500 direct employees, and supporting companies like semiconductor packaging and test, engineering support, semiconductor materials, equipment and design are likely to generate employment for another 20,000 workers and engineers.
According to June Min one of the leading Indian companies could invest up to 25% of the total equity of $160 million-he refused to reveal the name of the company. A leading Indian bank has accepted to syndicate $290-million debt financing. It also informed that the demand for semi-conductor products reached $1.2 billion by the end of last year. NTSI is expected to contribute $210 million to the domestic product of Andhra Pradesh.
NTSI which incorporates by seed financing; with Min investing 60% of the equity, the Andhra Pradesh Industrial Infrastructure Corporation 20% and private investors- Jai Ramesh and M. Prabhakara Rao, 20% each.
Min, said, "The financing would include $64-72 million equity; $116-130 million debt and a $150-million construction fund. The technology partner will invest up to 20% of the total equity of $160 million, he added, "Indian contribution of the total investment would be around $ 310 million."
The technology package will include advanced 250 and 180 nano meter process technology, intellectual properties and technical services. NTSI expects to receive technology transfer package which will also include a commitment for 130 nm technology transfer within 12 months.
