Made in India chips from June 2007

SemIndia, a consortium with investments from strategic partners, will roll out
its first batch of chips by June 2007 from its Hyderabad facility and has
already procured orders to the tune of $400 million. The consortium is setting
up the first phase of the project, an ATMP (assembly, testing, mark and
packaging) plant with an estimated investment of $100 million, which would be
funded through $30 million equity and $70 million debts.

Bob Kondamoori, MD, Sandalwood Partners, an India-specific venture fund, said
that while Flextronics and Sandalwood Partners, an India specific venture fund,
is taking

$10 million each in equity and the promoters would fund the remaining $10
million.

“For the debt portion of 70 percent the company had tied-up with ICICI Bank
and the State Bank of India,” he informed.

“Andhra Pradesh government has already allotted 75 acres for the company,”
he said adding that the building construction would be completed by March 2007.

According to him, the major order is from AMD and they have already worked
out on the technology transfer for the wafer fab to be set-up in the second
phase.

“The company is awaiting the government's semiconductor policy, which is
likely to be announced by November, to implement the second phase,” he added.

The company plans to employ about 1,000 people in the first phase, and most
of them would be diploma holders.

R JAI KRISHNA