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CCEA approves two semiconductor units

Saturday, 15 Feb 2014
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On 14 February 2014, the Cabinet Committee on Economic Affairs (CCEA) accorded approval for setting up two semiconductor wafer fabrication (FAB) manufacturing facilities.


These two projects are to be set up by two consortia -- one led by Jaiprakash Associates, and the other by Hindustan Semiconductor.


The consortium, led by Jaiprakash Associates includes International Business Machines Corporation and Israel-based TowerJazzto and it will set up a project along Yamuna Expressway, Uttar Pradesh. The project, estimated to cost Rs 34,399 crore, will have 40,000 wafer starts per month (WSPM) capacity.


The Hindustan Semiconductor-led consortium includes French-Italian electronics and semiconductor manufacturer, ST Microelectronics (STM), and Malaysia-based wafer manufacturer, Silterra. The project, entailing an investment of Rs 29,013 crore, will be developed at Prantij in Gujarat. It will have a total capacity of 40,000 WSPM.


These companies will get all the benefits mentioned under the National Policy on Electronics, like modified special incentive package which allows upto Rs 10,000 crore in benefits under the 12th Five Year Plan ending 2017, among others. Besides, these projects will be given interest-free loan of about Rs 5,124 crore for 10 years.

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