BANGALORE, INDIA: There was a very prominent news last week regarding the opening of Toshiba-Sandisk Fab 4, the latest 300mm wafer fabrication facility for NAND flash memory at Toshiba’s Yokkaichi Operations, in Mie Prefecture, Japan. It may have missed the eyeballs of many of us.

Also, a little over a month ago, SEMI published a report saying that despite falling memory prices, companies would continue to spend big on 300mm fabs. SEMI's report also looked at fab equipping trends and regions that would see growth in construction spending in Asia -- Taiwan, Korea, Japan and China. It will be interesting to watch developments unfold in India regarding fabs.

However, let's focus on the Toshiba-Sandisk Fab 4! Apparently, there are takeaways for those looking to set up fabs in India. For instance, Hindustan Semiconductor Manufacturing Corp. (HSMC) and SemIndia are building fabs in Hyderabad, Andhra Pradesh.

Obviously, funding was never a problem for Toshiba and Sandisk. Toshiba funded the construction of the Fab 4 building, and Flash Alliance, Ltd, a Toshiba-SanDisk venture established in July 2006, 50.1 percent owned by Toshiba and 49.9 percent by SanDisk, is funding the advanced manufacturing equipment now being installed in the fab.

HSMC and SemIndia would have partners for its fabs. HSMC has roped in Infineon as a technology partner and licensed its 130nm technology. HSMC's Web site says that HSMC plans to establish two foundries in the first phase. Buildings will be done simultaneously for both foundries.

HSMC's first foundry will be equipped with 200mm with cutting-edge technologies 130nm, followed by 90nm. This foundry will be completed in 24 months and will be in revenue earning level after qualification of line in 27-30 months. The second foundry will be equipped with 300mm with future technology of 65nm. It might install 90nm technologies, if required by customers. This will be operational in 36-48 months time will be at the revenue earning stage.

SemIndia has AMD as a partner, besides having folks such as Flextronics and Broadcom, among others by its side. So, it is safe to assume SemIndia would also have something similar planned.

How about 56nm and 43nm?
Some other learnings from Toshiba-Sandisk's Fab 4: Fab 4 has been designed to minimize any impact on operations from natural disasters. Also, Fab 4 would employ 56nm process technology at start-up, and has plans for gradual transition to 43nm technology, starting March 2008. Maybe, the proposed Indian fabs would need to look at both aspects. By the way, Toshiba-Sandisk Fab 4 was built in about a year's time. The proposed fabs in India should perhaps, look at similar timelines.

In between, there's news that Hynix signed a contract to sell the equipment in its 200mm fab in Wuxi, China to China Resources (Holdings). Now, should this have any bearing on the idea of a 200mm fab? Or should India only focus on 300mm fabs? May I add that recently, a member from an Israeli semicon delegation visiting India mentioned it would not be a bad idea for India to have 200mm fabs!

It is worth noting that the India Semiconductor Association (ISA) has been doing great work in taking Indian semicon initiatives abroad, the latest being the MoU with the Taiwan Semiconductor Industry Association (TSIA). Even the Israeli semicon delegation to India was here on ISA's invitation. So, all the right moves are being made.

However, slow India has already missed the Intel bus. If we are to be a world-class semicon hub, we cannot afford to be slow -- in decision making, strategy and implementation. They should be quick and effective!