HSMC (Hindustan Semiconductor Manufacturing Corporation) and Infineon have reached a memorandum of understanding to collaborate on a semiconductor fab project in India. According to the Indian Economic Times, HSMC plans to kick-start its project by investing US$1 billion in an 8-inch wafer fab and up to US$3.5 billion in a second fab producing 12-inch wafers. Infineon has agreed to license process technologies for this project. Location of the fabs, however, has not yet been disclosed.