The Hindu Business Line : $12-b chip unit coming up in AP

One of the main promoters of Nano-Tech Silicon India Pvt Ltd, Dr P. June Min, and the Andhra Pradesh Chief Minister, Dr Y. S. Rajasekhara Reddy, at the `ground breaking' ceremony for the fab facility at Rajiv Gandhi Nano Technology Park in Srinagar village of Ranga Reddy district on Sunday. - - Mohammed Yousuf

Hyderabad , June 26

NANO-TECH Silicon India Pvt Ltd (NSTI), which plans to set up a mega semiconductor fab facility, hopes to complete the first round of financing and finalise a technology partner within the next 60 days. (A fab facilty is a silicon wafer manufacturing plant.)

The financing includes $64-72 million equity; $116-130 million debt and a $150-million construction fund. The technology partner will invest up to 20 per cent of the total equity of $160 million, according to Dr P. June Min, one of the main promoters of NSTI.

Speaking to newspersons at a the `ground breaking' ceremony for the semi-conductor fab facility, which is expected to cost over $12 billion in the next 15-17 years, Dr Min said the Indian contribution of the total investment would be around $310 million.

Asked if IBM was joining as one of the leading partners, Dr Min, the South Korean techno-entrepreneur, said, "The chances are less than 50 per cent now." NSTI has been scouting for both industrial investors and technology partners.

The Andhra Pradesh Chief Minister, Dr Y. S. Rajasekhara Reddy, was the chief guest at the project function. He said the facility (which will be close to the upcoming international airport on the outskirts of Hyderabad) would trigger a rapid growth in the electronics and semi-conductor sectors.

NTSI was incorporated on April 25, 2005 by seed financing; with Dr Min investing 60 per cent of the equity, the Andhra Pradesh Industrial Infrastructure Corporation 20 per cent and private investors— Mr Jai Ramesh and Mr M. Prabhakara Rao, 20 per cent each.

According to a press release from NSTI, one of the leading Indian companies could invest up to 25 per cent of the total equity of $160 million. A leading Indian bank has accepted to syndicate $290-million debt financing.

The demand for semi-conductor products reached $1.2 billion by the end of 2004 in India. The fab facility would contribute $210 million to the gross domestic product growth of Andhra Pradesh, the release added.

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