Cricket Semicon commits $1 b for analog chip plant

US-based Cricket Semiconductor has committed an investment of $1 billion (over Rs 6,000 crore) to set up the country’s first analog electronic chip-making plant in Madhya Pradesh.

Talking to Deccan Herald after signing the MoU (memorandum of understanding) with the state government, Cricket Semiconductor Chief Executive Officer Lou Hutter said the time has come for India to set up its own analog electronic chip plant as there are growing opportunities in the sector.

“Besides demand from the electronic industry, India is having its own expanding engineering and design talent pool. It will help budding entrepreneurs to get into the product development phase soon. The creation of this fab ecosystem, coupled with the products and systems value chain, is expected to create close to 450,000 new jobs in the state,” he said.

“We want Apple iPhones and Sony phones also to be produced locally,” Hutter said.
Company sources confirmed that the MP government's Analog Semiconductor Fabrication (FAB) Investment Policy, approved early this month, made them opt for the state.

“We are very much satisfied with the support given by the state. The policy provides incentives like free government land, reimbursement of the cost of building the shell (building) of the manufacturing unit, round-the-clock power supply from two separate power grids, and quality water supply at the doorsteps of the fab unit at an internationally competitive price fixed for 10 years,” he said.

Hutter said that the company will work on the detailed project report under the Modified Special Incentive Package Scheme (M-SIPS) of the Centre for the first six months and then start work on the plant.

“We expect that the foundry will be ready by the end of next year. But the start date of production can be declared only after next year,” Hutter said.

Ashok Chandak, Chairman of IESA, (India Electronics & Semiconductor Association), the trade body representing the Indian ESDM (Electronic System Design and Manufacturing) industry, said the cost of developing analog semiconductor is much less compared with digital semiconductors.

Costs tenth of digital fab

“Here the cost is less than a tenth of digital fab production. Analog fab facility will help the country in developing the ecosystem in the semiconductor industry,” he said.
When asked about the unfulfilled promises on the semiconductor front, IESA President M N Vidyashankar said Cricket Semiconductor is serious about its investment plans.

“They made up their mind to invest in MP due to the incentives offered. Besides, the semiconductor industry is also registering massive growth,” said Vidyashankar.

The Department of Electronics and Information Technology (DeitY) has been instrumental in attracting large-scale investments in India’s ESDM sector with its supportive policies, he said.