HYDERABAD: Xenitis Infotech Ltd., a Kolkata-based technology company, has announced plans to invest Rs.1,200 crores for establishing a chip manufacturing facility in the Fab City coming up on the city outskirts.

A delegation of Xenitis, engaged in the manufacture of personal computers and computer spares, that met Chief Minister Y.S. Rajasekhara Reddy with its plans for the proposed facility was assured all the necessary support from the State Government for the project that is to be implemented in phases.

Logical extension

Xenitis president and chief financial officer Ambar Mukherji said the company had excellent long-term relationships with Taiwanese and Chinese hardware manufacturers and the move to set up the manufacturing base for chips for mobile phones was a logical extension to it. The project would be taken up in three phases of Rs.400 crores each that would be part funded through debt and equity. The company was already in talks with certain financial institutions that had agreed to support the project.

The project would also seek Central and State Government support as well. This would be in the form of land and about 30 per cent Central equity support. Xenitis was looking at acquiring about 100 acres of land in the Fab City project for the proposed semiconductor manufacturing facility and it was expected to finalise the strategic partner shortly. "Hyderabad has been chosen for the project as it has certain distinct advantages," he said.

During a recent interaction, Union Information Technology Minister Dayanidhi Maran had indicated that the semiconductor policy would be announced shortly and that would take care of the industry concerns, he added.

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