Andhra's Fab turning into solar production hub

HYDERABAD, INDIA: The Fab City project, which Andhra Pradesh had won pipping three south Indian states two years ago, has become an embarrassment for the state.

The project, which would have marked India’s foray into semiconductor manufacturing, is now being converted into a manufacturing hub for solar fabricators.

SemIndia, the consortium of investors including the government, which was to run the project, is understood to be lacking in funds to start the project.

The state officials, however, remain optimistic about the project.

“There are six more months in the timeframe given to SemIndia for the setting up of infrastructure for the ATMP plant. We are hopeful that there will be results by December,” said C S Rao, CEO, Andhra Pradesh IT adviser to the government.

Lion share of the 1200 acres of land allotted to the project has already been handed over to companies. “By next month-end, there will be no more land to allot,” said Rao.

All companies, which received this land are solar fabricators. About 13 companies have started functioning and three more are expected to start soon, said officials.

Nellore and Vizag will soon receive investments in solar fabricator area.

“Currently, it’s a downtime for the semiconductor industry. Solar manufacturing is also a fabricator, there is only small technical difference from semiconductors,” said Rao.

But, the industry does not agree with Rao in full.

“Other than that it is also a fabricator, solar manufacturing is very different. There is not as much intense technologies deployed and they don’t address the electronic goods industry as semiconductor fabricators do,” said Narayana Pidugu, senior director, Hyderabad Design Center, Cypress Semiconductor.

“The industry is going through a soft recession, which is predicted by the industry to end by this year. The setting of a semiconductor fabricator, however, should not be merely looked in terms of return–on– investment. It should be facilitated through public-private partnerships in India,” added Pidugu.

Industry bodies are also supporting the Andhra IT department in finding solar fabricators, even as the state is out on hosting the originally intended semiconductor fab.

“Solar fabs are the first stage of the process and will be a matter of great pride to Andhra Pradesh if it becomes a solar hub like Germany,” said Poornima Shenoy, president, Indian Semiconductor Association.

“We must not look at this as the failure of chip manufacturing not happening but be positive about the large number of solar fabs that will come up,” she added.

What has slipped out of the collective memory of many involved in the project was the actual demand by the Indian electronics industry for semiconductor chips firms.

Earlier, the ISA president had shared with CyberMedia News her vision of “golden triangle” for the semiconductor industry with a chip-designing hub in Bangalore, chip manufacturing in Hyderabad and electronics manufacturing hub in Chennai. A vision that for now, is remaining at the discussion stage.