FAB

The first-ever Fab (factory fabrication model) City, once set up, will act as a catalyst that would propel India onto the global chip manufacture map. In November, SemIndia announced the setting up of India's first-ever fab, an assembly-test-mark-pack (ATMP) plant that would offer services to manufacturers of integrated circuits.

Announcing this on Thursday at the two-day Indian Semiconductor Association (ISA) business conference here, Union IT minister Dayanidhi Maran said SemIndia, an NRI consortium working with the Indian government, has zeroed in on Hyderabad.

"Karnataka, Andhra Pradesh and Tamil Nadu were solid contenders but AP won SemIndia over," Maran said. Asked why Karnataka lost out despite it being a forerunner, Maran threw up his hands, laughing: "Don't ask me. Ask the SemIndia people; they had the final say."

More seriously, he said Karnataka's response was "too slow" and Tamil Nadu's "lukewarm". "Andhra Pradesh moved faster, provided 1,200-acre land, water, subsidised electricity, and lined up investors who would bring in $1 billion in equity to set up the facility."

Chipmaker AMD is an active participant in the venture and this fab would augment its regional assembly and test requirements.Interestingly, Intel is also in talks with India on a similar project.

It is a welcome News to Gowda's Family Ruling style. Similar JJ style of loosing project to TN.