Andhra Pradesh state government has given green signal for a consortium of professionals (Vittal Innovation City -VIC), headed by N Vittal, to set up a Special Economic Zone at the Hardware Park developed by Andhra Pradesh Industrial Infrastructure Corporation (APIIC). The SEZ will have Infosys chairman emeritus N R Narayana Murthy, UID Project chairman Nandan Nilekani and former ICICI chairman Narayanan Vaghul as key advisors and A Gururaj as its managing director.
The SEZ will focus on the electronics (telecom, photo-voltaic, consumer electronics and industrial electronics), technical textiles sectors and will have a university, and research and development centre. It will also house sectors such as aviation and helicopters, aerospace, media, biotechnology, health care, nuclear medicine and IT. According to the commitment, it proposes to invest Rs 1,500 crore in the first two years and another Rs 1,500 crore in the next two years. The estimated business revenue inflow in the first 18 months would be to the tune of Rs 10,000 million and Rs 20,000 million in the subsequent 36 months with 5,000 direct employments in 3-5 years.
A Gujarat cadre retired IAS officer, Vittal had earlier set up the Gujarat Vittal Innovation City (GVIC) in Gujarat in 2009 in which Gujarat Industrial Development Corporation has a 50% stake. GVIC was instrumental in India setting up its first Korean Industrial parkcum-Technology Zone in GVIC.
By fearing the possibility of rogue programs getting embedded in imported chips that could compromise security of critical installations, Indian government is planning to two chip-manufacturing units with an investment cost of $250 billion. Right now, there are no chip manufacturing facilities in India and the DIT has recently received the Cabinet's nod for the project. The facilities will be set up either exclusively under the Defence Research Organization and a defence public sector unit or through a public-private partnership.
Plans include setting up a semiconductor unit (Fab-1 ) with established technology to support fabrication of chips to meet the requirement of high volume products as well as the requirement of the fab-less design companies on pay-per-use basis. This activity may involve either setting up a plant in India with established technology or acquiring an existing fabrication abroad and its eventual relocation to India. The government support needed for either of the options will be negotiated," a department of information technology statement said.
Fab-2–the second phase of the project -- will entail a greenfield state-of-the-art semiconductor fabrication unit. This would imply giving equity or grant to an established integrated device manufacturer to set up the unit in India. To begin with, the department will set up an empowered committee that will identify technology and investors for the facilities. This committee will recommend the sequence and priority between the proposed Fab-1 and Fab-2 facilities.
India is already a hub for semiconductor design with nearly 2,000 chips being designed every year and more than 20, 000 engineers engaged in chip design and verification, which generates nearly $2 billion in revenues for the chip design services. The semiconductor manufacturing companies abroad are generating revenues to the tune of $ 15 billion from wafer manufacturing based on these designs. Chip packaging and testing companies are generating $5 billion revenue based on these wafers produced for the India designed chips.
In order to catalytic the semiconductor manufacturing efforts, government recently unfolded a new blueprint for the construction of two local wafer facilities, which is expected to cost about $5 billion. The government has proposed the establishment of a committee to identify technologies and investors to lead the effort. Along with identifying technologies and potential investors, the committee will recommend the level of government support for the fab project and the mix of grants and subsidies, before July 31.
Key goals of the fab effort include developing policies for encouraging access to Indian-made electronic products along with the creation of an Electronic Development Fund. The fund would provide grant money to build electronic manufacturing clusters. The government said the fab initiative also will seek to develop "localized content & value addition."
The fab initiative is the latest in a series of efforts designed to build up an Indian electronic hardware industry. Previous efforts have failed to produce tangible results, partly as a result of an on-going debate over whether India needs a domestic chip industry. The Indian government estimates that the creation of a chip making industry within India will help create 3 crore direct and indirect jobs by 2020.
Rich, you are right, but still nobody had explored the treasure. The Indian Semiconductor Association (ISA) is formed in 2005 and it’s the premier body, representing Indian Electronic System Design and Manufacturing (ESDM) industry. Now there are more than 150 members –both domestic and multinational enterprises. ISA works closely with the Government as a knowledge partner on the sector, both at the centre and at the state level. More details about ISA is availabile at www.isaonline.org
Daisy, for any industrial growth infra structure and basic amenities are very much needed and without that, nobody is going to invest. So the primary focus should be on similar line and now government is trying to do something for the same. If infra is ready, more investors can get attracted. One thing is very clear that India have the potential for semiconductor growth and market, it’s only a matter of exploring the opportunities. On the other hand, government has to clear the atmosphere for that.
I agree, India's long history of being a democratic state is an asset. I also see the intent of the government to invest in semiconductors as a plus. Toms report of the government's proposed establishment of a committee to identify technologies and investors is a step in the right direction. A good package of India may attract the "Angel Investors", but the government also need to look at basic infractures that will support this venture. No investor want to have to deal with the inconsistent electricity and lack of constant portable water that are potential added costs.
Larry, that’s right and depends on case to case. Government’s key goal for fabs includes developing policies for encouraging access to Indian-made electronic products along with the creation of an Electronic Development Fund. India has a plan for construction two fabs and the expected cost is about $5 billion. According to government sources “The wafer fabs will have catalytic impact on development of downstream and upstream products".
Adeniji, we are also having similar hopes. Hoping to revive its semiconductor manufacturing efforts, India recently unfolded a new blueprint for the construction of two local wafer facilities. The government has proposed the establishment of a committee to identify technologies and investors to lead the effort.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.