BOC Gases signs MoU with SemIndia Fab
To invest Rs 120 crore in Fab City project
| Speaking after signing the MoU at the unveiling of foundation stone for the $3-billion Fab City project, Sanjiv Lamba, managing director, South and Southeast Asia, BOC, said his company would invest about Rs 120 crore in the project in the form of providing gases and chemical infrastructure and equipment for the wafer fabrication and testing facilities. |
| On the mode of investment in the project, Lamba said both the companies were discussing the issue and would come out with a suitable model, including the option of equity participation in the project. |
| Disclosing their initial investment plans, Vinod K Agarwal, chairman, president and CEO of SemIndia, said they would invest $100 million in the construction of the testing and assembly facility, which would be ready in 12 months from the date of commencement of work. |
| On financial closure and equity holding pattern in the project, Agarwal said the financial tie-ups would be timed when the project actually needed money. |
| While SemIndia and the Andhra Pradesh government would initially hold the entire equity stake, the company would start distributing the stake among the future partners as and when it enters into agreement with them, he said. |
| Advanced Micro Devices (AMD) is the technology partner for the micro processor unit to be built in the Fab City. |
| Unveiling the foundation stone for the project for which the Andhra Pradesh government has earmarked over 1,200 acres of land near the new international airport, chief minister Y S Rajasekhara Reddy assured of all the support and assistance to make the semiconductor project a big success. |
| Stating that the national semiconductor policy, which encompasses direct and policy support from the Centre, to promote the industry, would be announced soon, Union communications and IT minister Dayanidhi Maran said this was the time to invest in hardware industry, including semiconductor sector, as the import of micro processors and other semiconductor components required for electronic technology manufacturing industry in the next 7-8 years alone would be in the range of $40 billion. |
| "With domestic manufacturing of these computer chips and other components, the hardware products will have a cost advantage of 15 per cent. Besides, more than 9 million new jobs are expected to be created in the high technology manufacturing sector once the component industry gets established," he said. |
| According to Christopher Shugg, vice-president of Surbana International, the consultants for the development of Fab City, the project can house about six fab units along with residential and recreational facilities. |