Fab facility to come up in 15 months

Intellect chief June Min plays hide-and-seek on specific details

The first round of financing for the proposed Hyderabad fab facility by the newly created semiconductor manufacturing company, Nano-Tech Silicon India (NTSI) Limited, is expected to be completed within 60 days, Intellect Inc chairman and promoter of the company P June Min said here today.

The first round of funding includes an equity of $64-$72 million, $116-$139 million debt and $150 million construction fund, he said without naming a single source of the funding during the ground-breaking ceremony performed by chief minister Y S Rajasekhara Reddy on Sunday.

The $600-million phase-1 project is scheduled to be completed within 15-18 months from now. NTSI awarded the contract for basic design and supervision to the Samsung Engineering of Korea on Saturday.

Though he stated that one of the major companies is going to invest up to 20 per cent equity besides being the technology partner of the project for the first time, June Min refused to reveal the name of the company.

He didn't say anything beyond what was mentioned in the press release, which said: "NTSI expects to execute the 'final agreement' with a technology partner within 60 days. June Min has contacted all major semiconductor companies and has been very successful to establish the technology partnerships with the best companies in the world."

June Min's hide-and-seek with the project status extended to other aspects as well. For example, the note circulated by him said that one of the leading industrial companies in India may invest up to 25 per cent of the total equity of $160 million and support $150 million financing for the fab facility.

But he refused to disclose the name of that Indian company despite repeated queries by the reporters. Similarly, the press note maintained that one of the leading banks in India had accepted to syndicate for the $290 million debt financing for the project.

Min, however, was reluctant to name the bank. He said: "Scores of investors and financial institutions have lined up to fund the project by offering premiums. In this situation, why should I mention one single bank?"

According to the press release, technology partners who offered technology licenses may also offer product buyback options to the company.

The technology package will include advanced 250 and 180 nano meter process technology, intellectual properties and technical services. NTSI expects to receive technology transfer package which will also include a commitment for 130 nm technology transfer within 12 months.

With regard to equipment, the press release said that Agere (AT&T/Bell Lab) offered one of the best equipment in the market.

On product front, it said MIPS Technologies offered microprocessor cores and NTSI executed an agency agreement with the company, which is supposedly the first agreement and was signed on June 10, 2005.