Cabinet nod to set up panel for two fab plants

New Delhi: The Union Cabinet on Wednesday approved setting up of an Empowered Committee to identify technology and investors for establishing two semiconductor wafer fabrication (fab) manufacturing facilities.

The decision is expected to have a significant impact in resolving issues in the capital-intensive electronics hardware sector and help the industry develop localised content. Investment for the two wafer fabs is estimated to be Rs 25,000 crore.

The committee comprises adviser to prime minister on public information, infrastructure and innovation; chairman of National Manufacturing Competitiveness Council; secretary, Department of Expenditure; member (industry), Planning Commission; M J Zarabi, former chairman and managing director, Semiconductor Complex Ltd; and secretary in Department of Information Technology. It may co-opt any other experts.

It will identify technology and potential investors for the establishment of semiconductor wafer fabs, and thereafter ascertain their interest in setting up of fab facilities in the country. It will assess and recommend the nature and quantum of government support like equity, grants, subsidies in physical and financial terms to set up the facilities. It will submit its recommendations by July 31.

The fabs are expected to have catalytic impact on development of downstream and upstream products, including ancillaries. It may have sizeable impact on the development of IT/ITeS sector. It will generate employment for 30 million people by 2020.