NRIs’ HSMC set to establish $4.5-bn fab plant in India

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New Delhi, Feb 22: Now that the Central government has finalised the semiconductor policy to encourage chip manufacturing in India, Hindustan Semiconductor Manufacturing Inc (HSMC), a consortium of NRI investors in the US, has decided to announce the details of its chip/wafer fabrication (Fab) project within a few weeks.

HSMC managing partner Devendra Verma told FE that the consortium, which includes well-known Silicon Valley entrepreneur Raj Singh, among others, has put together the contours of the semiconductor manufacturing plant in India.

“We were waiting for the policy to be announced. Now that it has been done, we will finalise the project. We will make a formal announcement of our project within a few weeks,” said Verma.

“The HSMC project will be in two phases, with an initial investment of about $800 million. The total project cost will be in the region of $4.5 billion,” he added.

To being with, HSMC will buy and shift foundry equipment from one of the world’s leading chip manufacturers. This phase will be for the existing line of technology with 200mm wafer size.

Verma said that in the second phase HSMC would build chips from 300mm wafers and make smaller 65 nanometer chips.