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Fab City foundation day 07/06/06

The foundation stone for the multi-million Fab City would be laid here on Wednesday. The multi-stage project to be set up at Tukkuguda, near the Hyderabad International airport project, is proposed to be taken up on a fast-track approach and would seek to attract more companies to the project and serve as a hub.

Andhra Pradesh could emerge as a hub for semiconductor and manufacturing base for electronics industries.

The State Chief Minister, Dr Y.S. Rajasekhara Reddy, will lay the foundation stone for the project, in the presence of the Union Minister for Communication and Information Technology, Mr Dayanidhi Maran.

The Fab City project will also host the Sem India project, which proposes to locate a semiconductor fabrication complex that will have an investment of about $3 billion when completed, with the phase one having about $1 billion in investment.

Sem India has signed up with Advanced Micro Devices (AMD). Promoted by Dr Vinod K. Agarwal, Sem India has announced its decision to locate its unit in Andhra Pradesh, which could potentially emerge as a hub for semiconductor and manufacturing base for electronics industries.

Thereafter, Sem India signed up with Flextronics for offering manufacturing services. As per the initial arrangement with AMD, the test and assembly unit could churn out 25 million chips a year and the Fab facility could possibly handle about 2,40,000 wafers a year with each wafer potentially holding hundred of chips. AP Invest, as a nodal agency, would provide necessary infrastructure support for the project.
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