India's first private-sector wafer foundry will soon get off ground in Hyderabad, a software industry powerhouse located in central and southern India. Spearheaded by Korea's Intellect, a consortium will set up a unit, tentatively named ISMC (India Semiconductor Manufacturing Company), over a site of 50 acres.

 

Once the details of the project are worked out, an initial amount of US$600 million will be invested in building an 8" wafer foundry. The second phase will see an investment of US$1 billion. Construction is expected to begin in by early 2005, while commercial production is slated for early 2007.

 

The fab will be producing chips up to 200 mm thick to be used primarily in communications devices and mobile phones. Output is planned to serve the domestic market.

 

Currently, India has two government fabs currently manufacturing 4" chips. They nevertheless cater to the defense requirements.