Thursday, August 08, 2013: A made in India chip could be a reality very soon! As reported by The Economic Times, the first high-tech chip fabrication facility will soon be set up in India. STMicroelectronics, which is Europe’s largest chip-manufacturer, and a group led by IBM are in advanced stages of discussion with the government for investing more than Rs 500 billion to set up a fab unit. It has been reported that both companies are supposed to invest more than Rs 250 billion each.
If the investments happen, the first chip-making facility will be set up in India. There is a huge demand for electronic hardware with current demand touching $45 billion figure and as per the government estimates, it is likely to touch $400 billion by 2020. Though country has been a crucial centre for chip design and verification, unfortunately, fabrication is nearly non-existent here. If India gets its chip-making facility, it would not only generate a large vendor base but also draw more foreign investment.
The location details of the chip-making facility has not been finalised so far. Allegedly, Greater Noida and Gujarat remain two of the proposed locations with third option near Bengaluru.
Both companies have declined to comment on the investment planning. In contrast, Commerce & Industry minister Anand Sharma verified that talks were in progress but did not divulge any details.
