Two proposals for semiconductor FAB units received: Sibal

The Indian government has approved setting up of two semiconductor wafer fabrication (FAB) manufacturing facilities in the country and two consortia have come forward for the purpose, Communications and IT Minister Kapil Sibal said here Friday.

The first consortium comprised Jaiprakash Associates along with IBM (US) and Tower Jazz (Israel). The outlay of the proposed FAB is about Rs.26,300 crore.

The second consortium comprises Hindustan Semiconductor Manufacturing Corporation (HSMC) along with ST Microelectronics (France/Italy) and Silterra (Malaysia). The outlay of the proposed FAB is about Rs.25,250 crore.

Sibal said the government has also approved the package of incentives for the two consortia.

An expression of interest would be published inviting proposals from other leading companies intending to establish FAB in India to be submitted in four weeks. The government would extend the special package of incentives to the qualified proposals, Sibal said.

"The proposed FABs will create direct employment of about 22,000 and indirect employment of about one lakh," he said.

The government had in 2011 constituted an empowered committee to identify technology and investors and to recommend incentives to be provided to set up two FAB facilities in the country.

The empowered committee had issued a global expression of interest inviting technology providers and investors to set up the FAB facilities. This committee submitted its recommendations to the government in March this year.