Semiconductor Wafer Fabrication Manufacturing Facilities in India Approved By Indian Government

The Cabinet has approved setting up of two Semiconductor Wafer Fabrication (FAB) Manufacturing Facilities in India. This project will create new job opening for around 22,000 direct employment and 1,00,000 indirect employment in India. Letter of intent will be issued to the two consortia by March 31, 2014. The final agreements are expected to be signed by August 2014.

With the approval of this project, it will be a boost for the development of Electronics System Design and Manufacturing eco-system facility in India. This will further help to lay a strong foundation to promote Electronics System Design and Manufacturing facilities in India.

Following Advantage will be achieved on setting up The Semiconductor Wafer Fabrication units

• Higher flow of capital and technology
• Generate new employment opportunities
• Provide value addition for electronic products manufactured in India
• Reducation of of imports and dependancy
• Provide innovation.

M/s Jaiprakash Associates Limited (with IBM, USA and Tower Semiconductor Limited, Israel as partners)

• Project Cost: Rs 34,399 crore
• Technology: 90/65/45/28 nm
• Capacity: 40,000 WSPM
• Location: Yamuna Expressway, Uttar Pradesh

M/s HSMC Technologies India Pvt. Ltd. (with ST Microelectronics and Silterra Malaysia Sdn. Bhd. as partners)

• Project Cost: Rs 29,013 crore
• Technology: 90/65/45/28/22 nm
• Capacity: 40,000 WSPM
• Location: Prantij, Gujarat

Main incentives to be be extended is as follows:

1. 25% subsidy on capital expenditure and tax reimbursement as admissible under Modified Special Incentive Package Scheme (M-SIPS) Policy.
2. Exemption of Basic Customs Duty (BCD) for non-covered capital items
3. 200% deduction on expenditure on R&D as admissible under Section 35(2AB) of the Income Tax (IT) Act.
4. Investment linked deductions under Section 35AD of the IT Act.
5. Interest free loan of approx. Rs 5124 crore each. (Exact amount to be calculated on Detailed Project Report appraisal.)