Engineering,Electronics sector projects by HSMC Technologies India Pvt Ltd in Prantij
Project Information
5704
HSMC Technologies India Pvt Ltd
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<p class="MsoNormal">HSMC Technologies India Pvt Ltd with technology from ST
Microelectronics and Silterra Malaysia Sdn Bhd, would involve an investment of
Rs29,013 crore. </p><br><b>The project, to be located in Prantij, Gujarat, will have a
capacity to manufacture 40,000 WSPM of 90/65/45/28/22 nm size</b>. The letter of intent for the projects will be issued to the
two consortia by 31 March 2014 and the final agreements are expected to be
signed by August 2014.
<p class="MsoNormal"><br></p><p class="MsoNormal">An empowered committee of the union cabinet has been
authorised to take all decisions to implement the FAB projects. The proposed FABs will create direct employment of about
22,000 and indirect employment of about one lakh, according to an official
release.
</p><p class="MsoNormal"><br></p><p class="MsoNormal">Besides, these FABs will have a big impact on the
development of electronics system design and manufacturing eco-system across
the country. This will help set up a critical pillar required to promote
electronics system design and manufacturing in India (See: <a href="http://www.domain-b.com/industry/Semiconductors/20130913_electronics.html"><span style="color:windowtext;text-decoration:none;text-underline:none">Govt seeks to
boost electronics by subsidising chip units</span></a>).</p>
<p class="MsoNormal"><br></p><p class="MsoNormal">The semiconductor wafer fabrication units, when set up, will
stimulate the flow of capital and technology, create employment opportunities,
help higher value addition in the electronic products manufactured in India,
reduce dependence on imports, and lead to innovation, the release stated.</p>
<p class="MsoNormal"><br></p><p class="MsoNormal">The government proposes to provide a 25 per cent subsidy on
capital expenditure and tax reimbursement as admissible under modified special
incentive package scheme (M-SIPS) policy. The units will also be exempt from
basic customs duty for non-covered capital items. Semiconductor wafer units are also eligible for 200 per cent
deduction on expenditure on R&D, besides investment-linked deductions and interest-free
loan of approximately Rs5,124 crore each, (Exact amount of the loans will be
calculated on the basis of detailed project report appraisal.)
</p><p class="MsoNormal">India's demand for electronics products is forecast to rise
nearly 10 times during this decade to reach $400 billion, or nearly Rs2,50,000,
by 2020, necessitating increased imports that could far exceed the cost of oil
imports.</p><p class="MsoNormal"><br></p>
<p class="MsoNormal">The government also decided to appraise all other FAB
manufacturers of the quantum of incentives being offered for establishing FAB
facilities in India. Such manufacturers may be asked to indicate their interest
and send their responses on specified parameters to the department of
electronics and information technology (DeitY) within a period of four weeks.</p>
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Project Value
INR 29013 Crore /-
Pre Project Activities Underway
Prantij
Gujarat
India
Engineering,Electronics
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