| "Exactly a year from now, the fab facility will be ready. Initially we will focus on pilot production and from the third quarter of 2006, we plan to start mass production of semiconductor products. We are expecting a 200 per cent return on investment from 2014," June Min, chairman of Intellect Inc, said. |
| "In the initial years, the semiconductor components that we produce would be used for products like mobiles and televisions. Later, we also plan to move towards manufacture of chips with 0.35 micron technology that can be used for production of liquid crystal displays (LCDs)," Min said. LCDs are commonly used in portable computers, digital cameras, video camcorders, digital watches, and other devices. |
| Around 10,000 people will be employed in the facility after the second phase, and the people involved in the manufacturing process will be given six months vocational and hands-on training for this purpose, Min said. |
| Giving the break-up of the costs involved in the first phase of the $600 million investment, Min said that while $380 million would involve equipment cost, $150 million would involve construction cost and the remaining $70 million would be operating cost. |
| India has an advantage of low labour cost that is one-third of Korean labour cost and 30 per cent of Chinese labour cost, he added. |
| "Of the $600 million investment in the first phase, we would propose $150 million to be from government subsidies, $220 million from debt financing, $70 million from non-debt financing and the remaining $160 million from equity participation. For the equity participation, we would like $80 million to be from Indian partners and an equal amount from venture capitalists and institutional investors," Min said. |
| Min plans to hold talks with institutions like Bank of America and Standard Chartered and Indian investors like Reliance and Tatas for investment purposes. |
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