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HSMC Enters Into Agreements With L&T, IL&FS To Establish Semiconductor Plant

Wednesday, September 18, 2013: Hindustan Semiconductor Manufacturing Corp. (HSMC) has signed agreements with infrastructure firms, Larsen and Toubro Ltd. (L&T) and Infrastructure Leasing and Financial Services Ltd. (IL&FS) in the wake of imminent approval from the Government of India.

These infrastructure companies will hold a stake in the project, construct the wafer fab grounds and ensure completion of the first phase by the year 2016, explained Devendra Verma, Chief Executive and Founder of Hindustan Semiconductor, who is excited by the idea that his company will be the first company to establish a semiconductor plant in India, the LiveMint reported.

Creation of a semiconductor manufacturing facility has been in the offing of India since the year 2007. And in the year 2011, an empowered committee was constituted by the government with the purpose of identifying technology and investors and to come up with incentives meant for setting up two fab facilities in India. Moreover, the committee had issued a global expression of interest (EOI), sending invitations to technology providers and investors to establish the fabs. After this, the committee submitted suggestions to the government in the month of March 2013.

The fab is supposed to provide direct employment to nearly 22,000 people and indirect employment to around 1,00, 000 as per the Union Minister for IT and Telecom, Kapil Sibal. Moreover, the companies, which are interested are supposed to submit their proposals in the coming four weeks.

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