NEW DELHI: Two consortia -- one led byJaypee Associates and other by Hindustan Semiconductor -- are in race for setting upsemiconductor plants in India which may involve an estimated investment of Rs 25,000 crore.
"There are two consortium for setting up wafer fab in India ... one is led by Jaypee Associates and other by Hindustan Semiconductors (HSMC). They have been shortlisted but no final decision has been taken yet," official sources told PTI.
Government has plans to set up two semiconductor plants for strategic reason where electronic chips will be produced.
Jaypee Associates is learnt to have partnered with IBM and Israel-based Tower Jazz for setting up fabs. Partners of HSMC, founded by non-resident Indians, could not be ascertained.
The electronic chip is a key component of modern electronic and high tech equipment. It controls function of electronic product and it can be manipulated with help of softwares for cyber espionage which can have impact on national security.
India depends highly on imports for meeting electronic product requirement which includes import of electronic chips as well. The country imported electronics items worth about $ 40 billion as of July 2012, according to ELCINA.
The National Electronics Policy draft forecasts such imports to touch a humongous $ 300 billion by 2020 if efforts are not made to boost domestic production of electronic products.
The Cabinet on April 20, 2011 has approved setting up of an Empowered Committee for identifying technology and investors for setting up two Semiconductor Wafer Fabrication (Fab) Manufacturing Facilities in the country.
Government has agreed to provide financial support for setting up these plants but "The exact level of government support could be finalised by way of negotiations".