Andhra likely to host India's first Fab city

BANGALORE: Andhra Pradesh is most likely to have a Fab city, the first in the country.

Officials familiar to the matter told CyberMedia News that Andhra Pradesh has become a preferred destination to host a chip manufacturing facility following the political uncertainties in its neighboring Karnataka.

Sources said that Andhra would be allotting 1500 acres of land to set up a plant near Hyderabad.

In December 2005, Industry body, Indian Semiconductor Association (ISA) had brought out a blueprint for building fabrication plant in India.

The blueprint contains details of the kind of land, water, power requirements that a Fab entails, and also legislation details that would be favorable for the industry.

ISA has recommended legislations like a 100 percent tax holiday for ten years for manufacturing units operating inside Fab city; incentives for expenditure on R&D activities and exemption from payment of dividend distribution tax.

A Fab city would entail the allotment of around 1500 acres of land with adequate and uninterrupted power, water and infrastructure facilities.