SemIndia sets Q4 ’09 target for operations

SemIndia sets Q4 ’09 target for operations
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First Published: Thu, Apr 26 2007. 12 36 AM IST
Updated: Thu, Apr 26 2007. 12 36 AM IST
SemIndia Fab Pvt. Ltd, which is setting up a $3 billion (Rs12,300crore) semiconductor manufacturing complex in Hyderabad, expects to start production by the fourth quarter of 2009, a year after finishing construction of its factory, the company’s chairman and chief executive Vinod K. Agarwal said.
An assembly, testing, manufacturing and packaging facility, coming up at an investment of $100 million, will be operational in the next 12 months, Agarwal said.
“We have roped in three equity investors into the project already—Flextronics International Ltd, Xalted Networks and Sandalwood Partners," Agarwal said, while declining to comment on the size of their holdings. About $30 million for the assembly and testing facility has been committed by Sandalwood Partners, the venture capital firm’s managing partner Bob Kondamoori said.
Agarwal said SemIndia is waiting for the state government to announce incentives on power, water and transfer of land to the company before beginning construction of the project. The company also expects the government to announce its equity contribution to the project. Investments from Advanced Micro Devices, the world's second-largest chipmaker and a partner in SemIndia, will depend on the Andhra Pradesh administration's decisions. The government is to pick up 11% equity, with SemIndia promoters and strategic investors contributing 89%, Agarwal said.
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First Published: Thu, Apr 26 2007. 12 36 AM IST