'Chip foundry possible'

India has begun studies to build a silicon foundry which is aimed at producing next generation wireless chips, Union IT minister Dayanidhi Maran said on Saturday.

"We are also looking at RFID chips manufacturing facility. But all of these are on the drawing board, nothing is finalised," Maran told reporters here after inaugurating the new facility of the e4e group.

RFID, meaning radio frequency identification device, has been in use since World War II, but is now becoming a rage due to the use of silicon chips, making it wireless and easier to track goods movement.

Maran said Prime Minister Manmohan Singh was keen on a silicon foundry in the country and "we are moving in the right direction."

He said that a chip manufacturing unit needed huge investments - upwards of $3 billion- and the nation needed to harness the right technology for setting up one.

"It is still on the drawing board. At this moment, it would be too premature for me to make any bold statements," Maran said.