The Hindu : Business : Flextronics takes stake in SemIndia

Online edition of India's National Newspaper
Wednesday, Apr 05, 2006

Business

Business

Flextronics takes stake in SemIndia

Special Correspondent

Chip facility will cost Rs. 15,000 crore

NEW DELHI: Singapore-based Flextronics has taken a stake in the country's first major chip manufacturing facility being promoted by SemIndia, a consortium of non-resident Indians.

The exact investment amount was not disclosed but company officials said Flextronics would manufacture electronic products for SemIndia which in turn would make semiconductor chips for products such as cell phones, set-top boxes and personal computers.

The announcement was made here by the SemIndia Chief, Vinod K. Agarwal, and Flextronics Asia, Managing Director, Peter Tan, in the presence of Union Communications and Information Technology Minister, Dayanidhi Maran, and Andhra Pradesh Chief Minister, Y. S. Rajasekhara Reddy.

The plant, to be based in Andhra Pradesh, is estimated to cost about Rs. 15,000 crore with industry officials expecting the Centre and the State government to contribute at least a quarter of the project cost. The Centre has so far indicated an investment of about Rs. 1,000 crore and the State government may contribute in kind.

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