Photo: Shanker Chakravarty.

TECH TRANSFER: Dayanidhi Maran (left), Union Minister for Communication and Information Technology, shakes hands with. Wolfgang Ziebart (right), CEO, Infineon Technology Global, in New Delhi on Wednesday. Devendra Verma (centre), Chairman, HSMC, looks on.

NEW DELHI: Hindustan Semiconductor Manufacturing Corporation (HSMC), promoted by a group of non-residents in the Silicon Valley in the U.S., said on Wednesday it has tied up with the German semiconductor manufacturer Infineon Technologies to set up two chip-making plants in India with an investment of $4.5 billion.

This is the second major investment since the Government notified its ambitious Semiconductor Policy a week ago announcing various sops for those setting up their fabrication units in the country.

While in the first fabrication unit that will produce chips on 8-inch wafers, an investment of $1 billion would be made, the second and more advanced plant that will produce 12-inch wafer, would require an investment of around $3.5 billion.

As per the memorandum of understanding signed by the two companies, Infineon will license its basic process technology, along with process technologies for radio frequency, embedded flash for chip card applications and embedded flash for automotive applications to HSMC.

Infineon will offer expertise and advice for the technology transfer and setting up of the HSMC fab. Infineon will also license its fully qualified and silicon design libraries. This will enable a faster ramp-up of product development for HSMC.

"This move will further strengthen Infineon's position as a leading player in the Indian semiconductor market where it has been active for the past ten years," said Infineon's President and CEO, Worlfgang Ziebart.

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