Details of India' first private-sector wafer foundry, ISMC (India Semiconductor Manufacturing Company), became available recently after such project was first announced in November 2004.

 

According to Korea's Intellect, which has been spearheading the project, the foundry is expected to produce wafers for Samsung, LG, Motorola, Moser Baer, Millenniums Electronics, and Toyota once completed in 2006. While production will be targeted at consumer electronics and automotive IC (Integrated Circuit) markets, chip designs will be part of business strategy.

 

In the first phase of construction, an amount of US$600 million will be invested in building an 8" wafer foundry. Upon completion at the end of 2005, equipment installment and pilot production will be conducted before commercial production is introduced in the third quarter of 2006. Initial capacity is estimated at 300,000 units per month. Another US$2.5 billion will then be invested for construction of a 12" foundry, which will reach a monthly capacity of 200,000 units. 

Over 70% of ISMC's capacity will be dedicated to consumer electronics, automotive IC, communications, and PC markets.

 

Intellect also pointed out Hyderabad of the Andhra Pradesh province was chosen as the location for reasons such as talent, infrastructure, and future subsidies from the government. Supplies of water and electricity and export systems for chemical components are also favorable in the province. 

 

In the future, ISMC will derive its revenue from three sources. 30% of the revenue will come from technology partners, another 30% from long-term customers, and the remaining 40% from customers of the strategic alliances it forms with other wafer makers.