Chennai, July 2 (KNN) Tamil Nadu on Friday signed an MoU with Singapore-based IGSS Ventures to setup a high-tech semiconductor park in the state.

The Singapore-based IGSS Ventures, one of the three applicants for central government incentives to set up semiconductor fabrication units chose Tamil Nadu as its factory location.

The total investment for a period of five years will be Rs 25,600 crore. The project will create job opportunities for more than 1,500 people.

The Semiconductor fabrication plant will be producing wafers ranging from 28 nanometres (nm), 45 nm and 65 nm, and an industry ecosystem infrastructure that hosts semiconductor circuit designers, material suppliers, equipment suppliers, and outsourced semiconductor assembly and test (OSATs) players.

The state has allocated nine strategic sites, including two sites near Chennai, to house a semiconductor fab.

Pooja Kulkarni, managing director and chief executive, the guidance department said, “the state government “accords the highest priority to the development of semiconductor manufacturing in the State. The State is traditionally strong in the automobile and auto components sector and emerging in electronics which have backward linkages with fab, which makes the State an ideal location for a fab unit in India.

The consortium, which will set up a semiconductor fab named Project Suria, is an applicant under the Indian Semiconductor Mission.

“The consortium believes that a differentiation strategy which offers both mainstream and emerging niche technologies with Tier 1 foundry capabilities and cost competitiveness will enable India to become a global leader in selective semiconductor technologies besides offering mainstream solutions in the technology nodes,” founder and group CEO Raj Kumar said in a statement.

The Union Cabinet last year approved Rs 76,000-crore incentive plan to encourage semiconductor, display manufacturing and fabrication units in India.

The incentives have been planned for silicon semiconductor fabrication, packaging, design, display fabrication, compound semiconductor and silicon photonics manufacturing units.  (KNN Bureau)