NRI consortium plans $3bn chip fab unit

Semindia, a consortium of overseas Indians, is planning to invest $3 billion to set up an advanced semiconductor manufacturing facility in the country with technology from US-based Advanced Micro Devices Inc.

"The project, which is a public-private partnership, is expected to take-off next year, and will lead to a world-class industry in India to meet both domestic and global demands of semiconductor chips for cell phones, PCs and set-top boxes," Vinod Agarwal, CEO of Semindia, said today.

"The central goverment as well as the state government (where the plant will be located) can be equity partners in the project," Agarwal added.

"AMD may pick up a stake in the proposed plant," Hector Ruiz, chief executive officer of Advanced Micro Devices Inc, said.