India is making Hyderabad, in the state of Andhra Pradesh, a world-class hub for advanced semiconductor and electronics manufacturing. This dedicated area has become known as Fab City.
The development of Fab City is being promoted by the government of Andhra Pradesh (GoAP) which has tasked the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) to oversee progress and establish public-private partnerships with developers.
It is anticipated that Fab City will create 5,000 jobs by 2009 and up to 1.4 million jobs by 2016 in over 200 ancillary industries
The government of Andhra Pradesh has allocated 1050 acres of land on the outskirts of Hyderabad, at Thukkuguda (Maheshwaram mandal, Ranga Reddy district), for the development of Fab City.
Fab City is located near the new Rajiv Gandhi International Airport, operational since 23 March 2008, and is also strategically positioned close to the 162km eight-lane outer-ring road and a metro-rail transport system also being built.
We have put together some location maps to help you get orientated. Our aim is to keep you informed about the development of this project; the project status, key milestones, investors and future occupants.
Steps are underway to ensure sufficient supply of basic resources such as water and power. GoAP has committed to installing a pipeline, capable of carrying dedicated capacity of 20 million gallons of water/day for multiple fabs and other manufacturing in Fab City, by the end of this year. Up to 200 MW of electric power is being made available for Fab City with two different grid lines.
Totel land alloted = 1050 arces
SemIndia Fab Private Ltd: 100 acres on a 88 years lease at a nominal rate of Rs.1 per acre per year. The government of Andhra Pradesh has also offered other concessions including subsidised electricity and water supply. Also, the actual amount of value added tax (VAT) paid by SemIndia on sales of products will be fully reimbursed for the first eight years and 50 percent for the next seven years.
This project will be realised over a number of years in three phases:
Phase 1: (07/08) investment of US$1 billion; the assembly and testing phase. Estimated employment: 2000 jobs.
Phase 2: (08/10) investment of US$2 billion; the construction of the actual chip manufacturing facility and leading to the production of semiconductor chips. Estimated employment: 1000 jobs.
Phase 3: (10/15-17) establishment of advanced semi-conductor plant. Estimated employment: 5000 jobs.
Solar Semiconductor Private Limited: 50 acres
Moserbaer India Ltd: 100 acres, for manufacturing thin film solar fab.
Titan Energy Systems Ltd: 50 acres for solar photovoltaic manufacturing unit.
Nano-Tech Silicon India: 50 acres for manufacturing thin film solar cell fab.
Air Liquide: 7 acres for manufacturing gas and chemical facilities.
Signet Solar Inc: 50 acres for thin film silicon photovoltaic modules.
M/S Embedded IT Solutions( India) Pvt Ltd: 10 acres for semiconductor and PCB manufacturing.
Moserbaer India Ltd: 100 arces
To put Fab City in the context of other important economic developments in the area check out Key Related Developments to find out about the new Rajiv Gandhi International Airport, P V Narasimha Rao Expressway [Outer-Ring-Road] and HITEC City.
Monday, 08 December 2008
Business Standard: Four clean technology companies - Solar Semiconductor, KSK Energy Venture Limited, XL Telecom and Energy Limited and Surana Ventures Limited - are set to start their operations at Fab City within a month.
According to BP Acharya, chairman and managing director of Andhra Pradesh Industrial Infrastructure Corporation Limited, these companies have the required machinery in place to produce solar cells and photovoltaic modules.
The companies have been allotted 160 acre out of the total 1,172 acre in the Fab City, which is a notified special economic zone. They would invest about Rs 6,532 crore ($1306.5 million) in phases in ten years.
Solar Semiconductor in the first phase would manufacture solar cells and solar panel. In phase II, it will enter into solar thin film technology and eventually scale up its manufacturing capacity to one giga watt per annum. The company would invest Rs 5,500 crore ($1,100 million) over a ten-year period.
KSK Energy Ventures, on the other hand, has set up a solar photovoltaic panel unit and has committed to invest Rs 351.25 crore ($ 70.25 million) in 50 acre.
Similarly, XL Telecom, which has also been allotted 50 acre, has lined up Rs 381.25 crore ($ $76.25 million) for solar cells and modules fabs.
Surana Ventures would invest about Rs 175 crore for solar photovoltaic cell and modules. It has already placed orders for machinery worth about Rs 30 crore. The company is setting up a 60Mw capacity unit and the products will primarily be for the export market. “The demand for solar cells is rising. Moreover, several fab units in China have closed due to overcapacity,” said company’s managing director Narender Surana.
Among others, Delhi-based Moser Baer, an optical storage device company, along with Allied Materials, is also setting up its facility for solar fab and photovoltaic cells on 100 acre here.
Acharya said the assembly, test, mark and package facility, storage and effluent treatment plants were being readied. Apart from industrial gases, a 5 million gallon capacity reservoir is already ready. Initially, it was planned to set up a 600 Mw captive power plant here.
Though a few companies have evinced interest in setting up the captive plant, Acharya said the government was looking at Fab City partners to execute the power project.
It may be recalled that the Fab City was originally conceived as a semiconductor hub with a capacity to make 30,000 wafers (each wafer has 100 to 1,000 chips) by 2009. The foundation stone was laid in 2006 and the Phase I was to be completed by April 2008.
However, only clean technology companies have till now come forward to start operations. “Most of the companies are investing in clean technologies as it is less labour and capital intensive and have shorter gestation periods,” Acharya said.
SemIndia, the anchor unit, which projected an investment of $3 billion (about Rs 15,000 crore) in its allotted 100 acre, struggled to achieve financial closure. In June, the government had issued notices to several companies that were allotted land but have not achieved financial closure or announced their technical tie-ups. Now, as a penalty, it has decided to reduce the land allotted to these companies. About 20 applications seeking land here are pending with the government.
TradingMarkets.com: US-based Solar Semi Conductor (SSC), which launched its Indian operations here last year, today entered into strategic partnership with IBC Solar AG of Germany to manufacture and supply high quality Photo Voltaic (PV) Modules.
The strategic partnership with IBC Solar is valued at Rs 2,300 crore ($575m) over three years, Venkata Kode, COO of Solar Semi Conductor said, adding, "We have found a strong partner which has more than 10,000 active systems situated all over the world".
The Chief Executive Officer of Solar Semi Conductor, Hari Surapaneni, while announcing the partnership, said the company intends to augment its manufacturing capacities to 200 MW from 30MW by year-end to meet the growing demand for PV modules.
He added that a total of $100 million or Rs.400 crores is being invested into the expansion that includes the addition of a 20MW unit to the existing 30MW in Kompally. Further, a major facility would be established in the Fab City, where Andhra Pradesh Government has allocated 100 acres to the company.
The company stated that the funds for the expansion would be raised through debt and equity. Solar Semiconductor will contribute $30 million as equity and the balance was committed by investors from the US, Germany and Europe, Surapaneni said.
Stating that the strategic partnership was mutually beneficial, Surapaneni said the company was actively considering setting up a manufacturing facility in Europe, most likely in Germany, in the next 15 months.
The company exports almost its entire production to Europe (Spain, Italy and Germany) and the US. It is exploring newer markets in Africa, Mexico and so on, the Executive Vice President, Nava Akkineni, said.
Following this partnership, the company hopes to achieve a turnover of $300 million or Rs.1,200 crores for the fiscal year ending December 2008, compared to Rs.50 crores last year, beginning September 2007. The company anticipates this turnover growth, as it has over Rs.3,000 crores worth of orders on hand to be executed by 2010, Nava Akkineni, said.
Nava added that the global market for solar energy is estimated at around $15 billion in 2007 and is projected to touch $100 billion by 2010, adding that this would give scope for several players in the solar space to grow fast.
The Vice President (purchasing and product management )of IBC, Christian Lieberth, said IBC has been growing rapidly in the recent years and scouts for a regular supplier of high-quality modules. He added that they have found Solar Semiconductor as a reliable partner, who would respond to varying requirements of IBC's customers.
Meanwhile, Solar Semiconductor has appointed Perry, G. Hayes, as its Chief Financial Officer. He was Senior Vice President, Investor Relations and Treasurer, with Solectron Corporation.
The company, which is emerging as an important supplier in the US and European markets in solar energy systems, is expected to register a turnover of Rs 1,200 crore this year as compared to Rs 50 crore last year, Hari R Surapaneni, CEO and President of SSC told reporters.
Surapaneni said, the 100 million dollars Solar Semi Conductor facility in Fab City would be operational from July next with a headcount of 350.
- Andhra Pradesh Industrial Infrastructure Corporation (APIIC)
- Advanced Micro Devices (AMD) - Principal technology partner
- Base Oxygen Corporation (BOC)
- Flextronics
- IMEC
- Infineon Technologies
- Moser Baer India Ltd
- SemIndia
- Signet Solar
- Titan Energy Systems Ltd (TESL)
- Xenitis Infotech Limited
* This list is subject to change.
- Hindustan Semiconductor Manufacturing Company (HSMC)
- Videocon
Rajiv Gandhi International Airport, also known as Hyderabad International Airport, is located on 5,500 acres near Shamshabad approximately 30 km from Hyderabad, and opened for business on 23 March 2008.
When fully operational Fab City will supply US$4-$5 million worth of chips to the international and domestic market every day and proximity to an international airport was a very important consideration when reviewing suitable sites for Fab City.
The new airport replaces the current Hyderabad airport, Begumpet Airport, and will provide world-class international airport facilities. It will have the longest runway (4.26 km) in India and will be able to handle the world’s largest passenger aircraft, the Airbus A380.
In its initial phase (2008) the airport will have a capacity of 5 million passengers and will finally (2018) accommodate 20 million passengers annually. The new outer-ring-road will link the airport to the center of Hyderabad providing an express route into the city.
The new airport was built by Hyderabad International Airport Limited (HIAL), a partnership between the GMR Group (63%, an Indian construction/infrastructure group), Malaysian Airport Holdings Berhad (11%), Airports Authority of India (13%, representing the Central Government), and the Andhra Pradesh State Government (13%).
HIAL has awarded the Passenger Terminal Building and Air Traffic Control works to China State Construction Engineering (Hong Kong) Limited (CSCEHK) for Rs 615 crore (US$6.15bn). The GHIAL has also given airside and runway works to L&T at a cost of Rs 495 crore (US$4.95bn).
It has recently awarded In-flight Catering to two renowned companies named LSG Sky Chef and Sky Gourmet. Fuel farm Operations Contract has been awarded to RIL.
Business Hotel in the airport has been awarded to Accor Group of Hotels for operation.
The eight-lane elevated outer ring road (ORR) will be developed along with satellite townships and urban developments. It will link the proposed Hardware Technology Park, Apparel City, Rajiv Gandhi International Airport, Fab City, Infosys and other software areas around Hyderabad.
The Outer Ring Road (ORR) along with the P.V Narashima Rao Expressway is considered important to decongest the city of Hyderabad and cater to the requirements of the upcoming Rajiv Gandhi International Airport.
- Land: 314 acres of land acquired for ORR
- Length: Total 162 Kms
- Cost: Rs.30 billion
- Start: April 2005
- Project Developers: Hyderabad Urban Development Authority (HUDA)
- Phase I: Gacchibowli to Shamshabad 22km - completion mid 2008
- Phase 2: Shamshabad to Hayatnagar
- Phase 3: Hayatnagar to Shamirpet
- Phase 4: Shamirpet to Patancheru and back to Gachibowli (end 2012)
 
S.No. Name of the road From To Length of the road (in Kms.)
- Bangalore Highway Katedan (to) Shamshabad 8.0
- Rajendranagar University Road APAU Entrance (to) Himayatsagar bund 7.
- Himayatsagar Road Mohalnagar Jn. (to) State Police Academy 6.60
- Narsingi Jn. Narsingi jn. (to) Mohalnagar Jn. 3.50
- Gandipet water channel Retibowli (to) Khajaguda 5.40
- Old Bombay road Retibowli (to) Gachibowli 11.30
- Extension of HITEC city road (from) Panjagutta (to) ORR (near Edulanagulapally) 30.00
- Manjeera Phase-I pipe line road Panjagutta Hafeezpet 13.50
- NH9 Bombay road Panjagutta Patancheruvu 33.00
- Secunderabad - Bombay road Paradise jn. Balanagar 6.40
- Narsapur Highway HMT junction ORR (near Dommara Pochampally) 18.00
- Nagpur Highway NH7 Paradise Jn. Suchitra Electronic Jeedimetla 21.00
- Paradise - Hasmathpet Paradise jn. Old Alwal 10.00
- Rajeev Rahadari Plaza Jn. Lothkunta 22.80
- Radhika theatre to ORR Radhika theatre ORR (near Narsampally) 14.50
- Keesaragutta road Kushaiguda Keesara 15.20
- Nacharam road Mallapur ROB Cherlapally 13.30
- Chengicherla - Mallapur road Survey of India Chengicherla (near ORR) 11.00
- Warangal NH 202 Uppal Jn. Narapally 10.10
- North Musi river drain Nagole bridge Muthwalguda 12.00
- South Musi river drain Nagole bridge Qutubullapur 12.00
- Nagole-Thattiannaram road Nagole Jn. Kuntloor 11.00
- Moosarambagh - Kuntloor road Moosarambagh Kuntloor 7.00
- N.H.No.9 Dilsukhnagar Hayatnagar 9.00
- Nagarjunasagar State Highway Bahadurguda Injapur 9.30
- Midhani-Badangipet DRDL Jn. Nadargul 13.00
- DRDL-Imarat Research road Chandrayangutta (DRDL Jn.) Imarat Research Jn, 12.00
- Srisailam State Highway Chandrayangutta Pahadisharif 11.20
- Others 32.50
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