Centre to help set up chip-making facility

Bangalore, July 1 | Updated: Jul 2 2005, 05:30am hrs
Indias success in the software space could be replicated in hardware, and the country could become the global hub for fabrication and chip-making, finance minister P Chidambaram said on Friday.

Inaugurating US-based Tessolves testing and engineering facilitythe countrys first such integrated facility hereMr Chidambaram said that the Centre was making efforts to set up a fabrication facility in India.

India lacks a fab facility and efforts are underway to make up this deficiency, to make India a hub for hardware also, he said.

The Rs 43 crore testing facility of Tessolve is one among 15 in the world in terms of size and quality, he said. The facility would provide digital, mixed signal testing and radio frequency (RF) testing and will employ 36 test engineers.

He said that government has been looking at potential investors and studying countries like Taiwan and China who have been in the fabrication space.

"India is a late entrant in this space, Taiwan and China have been in this space for many years,said the minister. However, there is much interest among entrepreneurs to invest in this space, he said.

Governments at the state and central levels should work to create an "enabling environment" for businesses, he said. "We must remember that not all talent is within the government, better and greater talent is outside it. That talent should be harnessed to work for the country. The only way to do this is to allow private enterprises to flourish," Mr Chidambaram said.

He said that the country needs to put in place "sound and quality" education system, to improve the quality of its manpower. "Our best is better than the best in other parts of the world. But when it comes to average, the quality of our manpower needs to be improved in comparison with those of other countries," he said.

He also said that governments should look at improving infrastructure in Indias cities including Bangalore. "More needs to be done towards (improving) the roads, setting up international airport, metro rail and providing uninterrupted supply of power and water," he said.