Indian fab guidelines promise exciting times for semicon electronics

Indian fab guidelines promise exciting times for semicon, electronics

Seeks investments in ecosystem units for LCDs, OLEDs, PDPs, solar cells, photovoltaics, storage devices, advanced micro and nanotech products, etc.

Pradeep Chakraborty

Monday, September 17, 2007

BANGALORE & NEW DELHI, INDIA: Better late than never, as the saying goes. The Department of Information Technology, Ministry of Communication and IT, Government of India, needs to be congratulated for coming up with the Special Incentive Package Scheme (SIPS) to encourage investments for setting up semicon fabs, and other micro and nanotechnology manufacturing industries in India!

The "ecosystem units" have been clearly defined as units, other than a fab unit, for manufacture of semiconductors, displays, including LCDs, OLEDs, PDPs, any other emerging displays; storage devices; solar cells; photovoltaics; other advanced micro and nanotechnology products; and assembly and test of all the above products.

Just a week or two ago, I was in conversation with some companies from Israel who were looking to develop business in India. Now, they, and others, have clear guidelines to follow. One of the companies, Nova Measuring Instruments Ltd, should feel happy that the definition of "ecosystem" includes assembly and test of products.

Nova develops, produces, and markets advanced monitoring, measurement and process control systems for the semiconductor manufacturing industry. Another well-known player, Tessolve, has been present in India since 2005 and would surely feel glad with the notification. At least, the media and others will take more notice of the company.

Top billing for displays, nano, solar
It is heartening to see that all sorts of displays -- LCDs, PDPs, OLEDs, as well as solar cells, and advanced micro and nanotechnology have been given top billing in the ecosystem units. Also, there would be a need to add those firms who could supply air systems, gases, etc., for fabs. Am sure those would come in too!

I have covered OLEDs in Hong Kong, China and Taiwan. When I first read about this technology back in the early 2000, I used to wonder whether India could have such a capability. Seems, it is now in a position to have OLEDs! I hope Lite Array (OLED) HK is watching and reading all of this.

Plasma display panels is another interesting line. The guidelines should interest LG, Matsushita, Sichuan Changhong Electric Co. Ltd, IRICO Group Corp. Panasonic, Asahi, Mitsui Chemicals, Nippon Electric, Samsung etc. Some are already present in India in one form or the other. It's just a matter of being keen on developing PDP in India.

LCDs could be another major investment area. Taiwan's AU Optronics (AUO), Chi Mei Optoelectronics (CMO), as well as Sharp, Samsung -- the top four -- as well as other biggies like LG, NEC, etc., need to be wooed.

In the same context, the Bangalore Nano 2007, which will be held in December, could not be better timed. There should be a whole lot of companies looking to be present at this show!

Already, lot of activity is on in the solar space. Also, SEMI and JPEA would be co-hosting a new photovoltaic event and exhibition, titled PVJapan 2008 during July-August next year. It is now quite likely India will feature prominently in the discussions at this event.

India's now on the threshold of major initiatives in the electronics manufacturing space. Some semicon fabs will also come up, and the number of fabless companies should likely increase. Maybe, TSMC and Tower Semiconductor, which was also in India recently, could oblige with some foundries too. Should all of this happen at the right time, we are in for exciting times.

©CIOL Bureau