States to compete for semiconductor units: Maran

Government of India has entered into an understanding with India Electronics Manufacturing Corporation (IEMC) for semiconductor fabrication which could cost between $3-4 billion.

Speaking at the inauguration of the factory of Xenitis Infotech, Union communications & IT minister, Dayanidhi Maran said, the model for the project would public-private partnership and the government urged different state governments to come forward if they were interested.

Several units would come up at different locations, explained Maran.

China had five such fabrication units and India had none and hence the government of India had given an in-principle consent for the unit.

"We want private participation" he said.

Maran said, he would write to all chief ministers asking them to propose what they could offer in terms of land, infrastructure, water, electricity. Maran pointed out, electronics industry was highly obsolescence prone.

"Capital equipment needs to be upgraded and changed more frequently than other manufacturing sectors. Technological changes in product design, finish and performance are changing fast. Manufacturers have to keep pace with these changes."

He emphasised that India was also emerging as a preferred destination for carrying out research and development to develop new products and applications.

"If we follow the development nationally and globally, almost every month we find that at least one major IT company in the world is setting up of strengthening their research and development (R&D) base in India. We have a wide R&D base in collaboration with leading research labs, academic institutions and in-house R&D as well as human resources base" said Maran.