The Hindu : Front Page : Work on Fab City 2nd phase soon

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Saturday, Jan 13, 2007
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Work on Fab City 2nd phase soon

W. Chandrakanth

Union Cabinet gives the in-principle nod for the semi-conductor policy

CHIPS ON THE ANVIL: A file photo of a semi-conductor chip developed at IICT. Fab City is to produce such state-of-the-art chips. — PHOTO: P.V.Sivakumar

HYDERABAD: Work on the second phase of the Fab City near the Shamshabad international airport here is all set to begin within the next four months following the in-principle nod given for the semi-conductor policy by the Union Cabinet in New Delhi on Thursday.

The State Government was sitting with fingers crossed about the Centre's policy since work on the first phase of providing infrastructure has been progressing at a brisk pace. It now expects the modalities relating to the incentive package and subsidy to be in place within a fortnight.

"We expect work on the second phase of the Fab City to begin in three months. The Government has already applied for pollution clearance certificate for the first phase and it may be sanctioned in three weeks.

Thursday's announcement is very encouraging for the prestigious project for which Chief Minister YS Rajasekhara Reddy has made untiring efforts," C. S. Rao, advisor to the Government on IT affairs, told The Hindu on Friday.

The Assembling, testing, mark, packaging (ATMP) unit, which forms part of the first phase and is expected to cost US $ 150 million, will be completed within one year, he said.

More firms interested

Mr. Rao indicated that the Government was "actively talking" to two more industry majors to establish units here. "They are also keenly interested and have promised us that they will get back after financial closure," he said.

The Government signed a memorandum of understanding (MoU) with SemIndia on February 16 last for establishing the US $ 3 billion Fab facility near Hyderabad.

It will produce 25 million chips annually and it is expected to handle 2.40 lakh wafers every year with each wafer holding one hundred chips.

It would be a world class hub for advanced semiconductor and electronics manufacturing meeting the domestic as well as export demands.

If two more companies being contacted now also join the stream, India could boast of a major achievement in its race to compete in the global chip market.

It is understood that Cypress, a leading solar cell manufacturing company, is also being contacted to establish a solar cell and solar module facility in the Fab City.

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