Andhra Pradesh has bagged the prestigious $3 billion Fab city project for making silicon chips, which will mark India’s foray in the area of semiconductor manufacturing - billed as India’s first world-class wafer fabrication unit and first assembly and test manufacturing unit. Andhra Pradesh scored over Karnataka providing subsidies and infrastructure facilities like land, water, and electricity to Us-based SemIndia for putting up the Fab City. He said the project would generate 15 lakh job opportunities when fully operational.

Once the Fab City becomes fully functional, it will become a world-class hub of advanced semiconductor and electronics manufacturing for domestic consumption with a strong export potential. The proposed facility will have a capacity to produce about 30,000 wafers a month. Each wafer will consist of 100-1,000 chips. Besides the chip manufacturing facility, the Fab City will house over 200 suppliers required to make semiconductors.

Mr Rajasekhara Reddy signed a memorandum of understanding with SemIndia — a consortium of NRI entrepreneurs, technocrats and investors. He said the state government had allotted 1,200 acres of land in Tukkuguda in Maheshwaram mandal near the upcoming international airport. The Fab City will have more than 20 computer chip manufacturing units and several ancillary units. It is expected to be completed in three phases. `State will emerge as the real hi-tech manufacturing hub of India’ The real credit for this far-reaching milestone achieved by the State goes to the people, says Dr. Reddy. Fab City will be given Special Economic Zone status, and will be developed by SemIndia and Advanced Micro Devices (AMD).

Andhra Pradesh Chief Minister Dr Y S Rajasekhar Reddy on June 07, 2006 unveiled the foundation stone for the $3-billion Fab City project. The chief minister said three companies had decided to set up units in Fab City, including Cyprus, a manufacturer of computer chips, and another firm manufacturing photovoltaic cells.

The Fab City Project is now on a fast track. The project is envisaged to be set up in three phases.

Under the first phase, a world class assembly, test, marking and packaging (ATMP) facility will be set up in an year’s time at an estimated outlay of $100 million. The ATMP plant will churn out 25 million chips a year.

Under the second phase, a fabrication (Fab) plant will be set up at an estimated cost of $1 billion. In the third phase, a sophisticated facility will be established with an outlay of $2 billion.

SemIndia will operate 200 mm and 300 mm Fab facilities for manufacturing semiconductor chips for cell phones, personal computers, set-top boxes, connectivity devices and other consumer, industrial and strategic electronics.

Sources:
Deccan Herald