Hindustan Semiconductor Manufacturing Corporation's consortium is planning to set up a semiconductor manufacturing unit at Prantij in Sabarkantha district of Gujarat.

The consortium includes French-Italian electronics and semiconductor manufacturer, ST Microelectronics (STM), and Malaysia-based wafer manufacturer, Silterra. The consortium has proposed to invest Rs 25,250 crore in the project.

The company has already signed an agreement with infrastructure companies, Larsen and Toubro (L&T), and Infrastructure Leasing and Financial Services (IL&FS) for the unit. L&T and IL&FS will take a stake in the project, construct the wafer fab, and complete Phase-I by 2016. However, the company is awaiting final approval for the project from the Union Government. The project will have the capacity to churn out 40,000 wafer starts per month of 300 mm (wafer) size, using advanced CMOS (complementary metal-oxide semiconductor) technology. In Phase-I, the company will produce 90 nanometre, 65 nanometre, and 45 nanometre; and in Phase-II, it will produce 45 nanometre, 28 nanometre and 22 nanometre nodes.

Recently, the Cabinet has given in-principle approval to the Telecom Ministry's proposal of setting up two semiconductor manufacturing facilities in the country.

Apart from Hindustan Semiconductor, Jaiprakash Associates, along with International Business Machines Corp, and Israel-based TowerJazzto have proposed a Rs 26,300 crore fab unit in Greater Noida.

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