German Semiconductor Company Will Provide Technology to U.S.-Based Company For Plants In India

German Infineon Technologies and Silicon Valley-based Hindustan Semiconductor Manufacturing will collaborate on chip manufacturing plants.

Infineon Technologies AG, a German semiconductor supplier, will license its 130nm CMOS process technology to the Hindustan Semiconductor Manufacturing Corp. (HSMC), a U.S. company founded by a group of NRIs (non-resident Indians), for two semiconductor manufacturing facilities that HSMC will build in India.

The Infineon technology will aid in the production of integrated circuits for mobile phones, ID cards and automotive applications in India for the Indian market.

HSMC will invest about $1 billion in its first fabrication plant, which will produce chips on 8-inch wafers. The second facility, for more advanced 12-inch wafers, will have an investment of $3.2 billion to $3.5 Billion. The plants are scheduled to begin production within two years.
According to Dr. Deven Verma, Chairman of the Board of HSMC, the collaboration will help India to become a destination of choice for the future manufuaturing of high-tech products.
Verma said that India wants to change the current perception "that India is for software development and design, while China is for hardware manufacturing."