India Electronics and Semiconductor Association (IESA) has announced the role played by them in the signing of Memorandum of Understanding between the Government of Madhya Pradesh, a state of India, with the US based Cricket Semiconductor for the establishment of an analog fab in the state. The proposed analog fab is expected to require an investment of Rs.6000 crore.
The establishment of the fab ecosystem accompanied with products and systems value chain is likely to create over 450000 new job opportunities, economic impact to the tune of $40 billion during the life span of the project, and reduce the import burden of electronic items of the country. Semiconductors being important components of electronic products, the water fab will help accelerate the growth in ESDM industry in this state.
With the state of Madhya Pradesh in India approving ‘Analog Semiconductor Fabrication (FAB) Investment Policy’ which contains provision for allotment of free government land, compensation of the cost of constructing the shell of the manufacturing unit, supply of quality water at the doorstep of the unit at a global competitive price for the first ten years, and power supply 24×7. Thus, the new policy extends support to the establishment of any fab with an investment exceeding Rs.3000 crore in this state.
The Department of Electronics and Information Technology has played major roles in attracting a number of large investments in the ESDM sector in India by the formulation of effective policies and programmes. The part played in this direction by Modified Special Incentive Package Scheme can also not be overemphasized. This project having an outlay of Rs.6000 crore is different from many other water fab projects. The focus in this project will be on technologies and processes that are most suited under Indian conditions, and meet the global requirements. The cost of establishment of a water fab is much less than that of the digital semiconductor products, and it is conducive to attract Indian entrepreneur in this sector.