IBM is also reportedly providing process technology for ISMC, which is expected to have a ground breaking ceremony for its initial fab on Sunday (June 26), according to the report. State chief minister Y. S. Rajasekhara Reddy is scheduled to perform the ground-breaking ceremony for the proposed fab, the report said.

As reported last year, South Korea's Intellect Inc. has recently approached the regional government of Andhra Pradesh with a plan to build a fab. The fab would be called India Semiconductor Manufacturing Co. or ISMC.

India's first major semiconductor wafer fabrication facility is set to be established in the southern city of Hyderabad. Hyderabad is best known for software development, but already hosts a small, privately-owned wafer fab owned by Teamasia Lakhi Semiconductors.

The proposed fab, which is expected to be an 8-inch plant, would have a total capacity of 30,000 wafers per month. Mass production is expected to begin by July 2006.

ISMC is expected to be launched in two stages at a total cost of $1.6 billion. The company, which is also looking at building a 300-mm fab, is also attempting to attract other investors, including the Tata Group of India .

IBM also has various chip technology agreements with AMD, Chartered, Samsung, among others.

By: DocMemory
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