Kolkata-based Xenitis Group, producers of low cost PCs, is planning to set up a semiconductor manufacturing unit at Hyderabad's proposed Fab City with an initial investment of Rs 1,200 crore-Rs 1,500 crore.
A company delegation met chief minister Y S Rajasekhara Reddy here today and secured assurance of land and other support from the state government.
Speaking to mediapersons after the meeting, Ambar Mukerji, president and CFO of Xenitis, said they were in talks with a couple of Taiwanese semiconductor majors for technology transfer for their project. The fab unit's capacity would be to the extent of $2 million revenues per day, he added.
“Initially, we would be producing 6 inch mobile chips used in mobile phones and later expand the operations to PC components,†Mukerji said, adding that the entire phase I investment of over Rs 1,200 crore, through both debt and equity, would be made within six months once the project is under way.
The plans on the technology front are expected to be firmed up in the next two months. It would be the company's first project outside West Bengal.
The company has received an assurance from the Centre that it would hold 30 per cent equity in their Hyderabad project, according to a Xenitis representative.
As for the formal agreement with the A P government, Mukerji said, the company would sign an MoU with the state government in another six weeks.
Stating that they sought the allotment of over 100 acres of land in the Fab City, Mukerji said the chief minister assured certain incentives to the company in addition to the land and the Centre’s policy support.
The AP government would also hold a small portion of equity in exchange of the land. There will not be any separate agreement with SemIndia, the main client of the Fab City project, except on services to be received from them, he clarified. The company president said that companies like Wipro and HCL were looking at their component manufacturing plans as the domestic availability of these products give at least a 15 per cent cost benefit to them.
According to Mukerji, Xenitis is already in talks with cellphone manufacturing companies like Ericsson for supply of mobile chips to be produced at the proposed Hyderabad unit. While Union communications and IT minister Dayanidhi Maran himself persuaded Xenitis to enter into the semiconductor manufacturing sector, the state government's APInvest, which has been handling the Fab City project, has done the rest, according to Mukerji.
"The other reason for looking beyond West Bengal is the ready availability of infrastructure, water and quality power. Hyderabad has it all," he said. Senior officials of the APInvest denied to speak on the project in view of election code.
A company delegation met chief minister Y S Rajasekhara Reddy here today and secured assurance of land and other support from the state government.
Speaking to mediapersons after the meeting, Ambar Mukerji, president and CFO of Xenitis, said they were in talks with a couple of Taiwanese semiconductor majors for technology transfer for their project. The fab unit's capacity would be to the extent of $2 million revenues per day, he added.
“Initially, we would be producing 6 inch mobile chips used in mobile phones and later expand the operations to PC components,†Mukerji said, adding that the entire phase I investment of over Rs 1,200 crore, through both debt and equity, would be made within six months once the project is under way.
The plans on the technology front are expected to be firmed up in the next two months. It would be the company's first project outside West Bengal.
The company has received an assurance from the Centre that it would hold 30 per cent equity in their Hyderabad project, according to a Xenitis representative.
As for the formal agreement with the A P government, Mukerji said, the company would sign an MoU with the state government in another six weeks.
Stating that they sought the allotment of over 100 acres of land in the Fab City, Mukerji said the chief minister assured certain incentives to the company in addition to the land and the Centre’s policy support.
The AP government would also hold a small portion of equity in exchange of the land. There will not be any separate agreement with SemIndia, the main client of the Fab City project, except on services to be received from them, he clarified. The company president said that companies like Wipro and HCL were looking at their component manufacturing plans as the domestic availability of these products give at least a 15 per cent cost benefit to them.
According to Mukerji, Xenitis is already in talks with cellphone manufacturing companies like Ericsson for supply of mobile chips to be produced at the proposed Hyderabad unit. While Union communications and IT minister Dayanidhi Maran himself persuaded Xenitis to enter into the semiconductor manufacturing sector, the state government's APInvest, which has been handling the Fab City project, has done the rest, according to Mukerji.
"The other reason for looking beyond West Bengal is the ready availability of infrastructure, water and quality power. Hyderabad has it all," he said. Senior officials of the APInvest denied to speak on the project in view of election code.