Centre studying Taiwan's semiconductor makers

Union finance minister P Chidambaram said here on Friday, the Centre was studying the semiconductor business models adopted by the market leader in chip making "" Taiwan.

After inaugurating a chip testing facility, the country's first such independent facility, Chidambaram said, the fact that India had started "rather late" was not a cause for worry, but a reason to act fast.

Recently, the Centre has been "closely and carefully examining various options", he said, referring to the clamour for a foundry to be set up in India.

The fledgling semiconductor industry in the country has "reached that inflection point where a little help can boost it into the big league," Rajendra Kumar Khare, chairman of the India Semiconductor Association said.

Rajiv Mehtani, head of the India Design Centre of Philips Semiconductors, told Business Standard on Thursday, "In design capabilities, India almost has the robust eco-system required."

With large OEMs, such as cell phone makers, seeing growing volumes in China and similar potential in India, the build-up for a foundry in India is gaining momentum.

The setting up of the testing facility also reflects that. Industry experts say, "The day you see the testing companies set up shop here, you can say the foundries are not far behind."

Chidambaram said, "We are looking at potential investors and the path taken by some other countries, especially Taiwan and China."

With the interest shown by Indian entrepreneurs, "I have no doubt the country will become a hub" for manufacturing chips as well, he said.

Semicon Park Private Limited, which was inaugurated on Friday, aims to become a cluster of testing firms. It is a Rs 65 crore "one-stop post-design and post-fab service facility for domestic semiconductor companies," the company said in a statement. On Thursday, Tessolve, a US-based testing specialist, became the first such firm to move into Semicon Park.

Johny Mathew, lead promoter and CEO of Semicon Park said, the park was incorporated in India in 2004, as a privately held company.

It has a "group of industry veterans as directors", led by Mathew, who have "pooled their personal wealth" to raise the first tranche of some Rs 35 crore for the company. Semicon Park expects to tap outside investors for the remaining Rs 30 crore, he said.