Andhra to have $12bn-semiconductor fabrication unit

From the largest single FDI in the country to the country''s largest gas find, Andhra will also have the largest semiconductor fabrication facility in the country. Nano-Tech Silicon India Pvt Ltd (NSTI), which plans to set up a mega semiconductor fabrication facility, hopes to complete the first round of financing and finalise a technology partner within the next 60 days.

The financing includes $64-72 million equity; $116-130 million debt and a $150-million construction fund. The technology partner will invest up to 20 per cent of the total equity of $160 million, according to Dr P June Min, one of the main promoters of NSTI.

Speaking to journalists at a the `ground breaking'' ceremony for the semi-conductor fabrication facility, which is expected to cost over $12 billion in the next 15-17 years, Dr Min said the Indian contribution of the total investment would be around $310 million.

NSTI has been scouting for both industrial investors and technology partners. The facility is expected trigger a rapid growth in the electronics and semi-conductor sectors.

The demand for semi-conductor products reached $1.2 billion by the end of 2004 in India. The fabrication facility would contribute $210 million to the gross domestic product growth of Andhra Pradesh, the release added.