Karnataka Govt approves `Fab City' project

Karnataka Govt approves `Fab City' project
The Hindu Business Line

Karnataka has agreed to the Centre's condition of providing required infrastructure facilities.


THE Karnataka Government on Thursday approved SEM India's `Fab City' project in the State, indicating that it is keen to attract investments in the semi-conductor manufacturing sector.

The State Cabinet approved the NRI firm's proposal to set up a chip-making plant, better known as wafer fabrication facility or fab, on the Bangalore-Mysore stretch with an investment of Rs 15,000 crore, said Mr B. Shivaram, State Minister for Information.

SEM India had recently announced plans to invest $3 billion in a chip-making plant in India with technology licensed from the US-based Advanced Micro Devices Inc to create customised products for the Indian market and drive down chip prices.

Karnataka, one of the three States identified by the Centre for setting up the semiconductor facility, has agreed to the Centre's condition of providing required infrastructure facilities for setting up the `Fab City' which include 1,500 acres of land, uninterrupted power supply and 10 million gallons of water a day, Mr Shivaram said.

The Fab City, which would provide employment to 20,000 people, would produce silicon wafers, has a testing, assembly and packing unit, IC Design houses, TFT panel Fabs, Solar cell Fabs, Rand D facilities, besides an university and technical institution for training manpower for the development of the semi-conductor industry, he added.

Similar proposals have been made for Chennai and Hyderabad, which are also vying for the project, Mr Shivaram said, adding that the Andhra Pradesh Government too had approved the project.