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The Silicon Hyderabad

In July of next year, India’s first merchant chip foundry will open its doors, and begin mass producing semiconductors for a domestic consumer market. Located 18 kilometers south of Hyderabad, near that city’s new international airport, in the Rajiv Gandhi NanoTech Park, the new foundry signals a major shift in India—from a workhorse for other countries to an innovator for its own market.

Although the foundry won’t produce the latest in semiconductor technology, it will be sufficient for the industries it’s targeting, including wireless communications, consumer electronics, computers, and cars. As such, it could upset chip-production dynamics in Asia, bringing India one step closer to becoming an important player in the global semiconductor market.

“India has gone from nowhere to becoming a world-class player in high-level semiconductor design,” says Rajat Gupta, a Bangalore-based semiconductor industry veteran. “Now, the next stage is starting—innovating for the domestic market and in new global sectors such as bioinformatics. The potential is huge.”

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