Union Minister for Telecom and Information Technology Kapil Sibal said on Tuesday that final stages of negotiations with electronic chip makers were on for setting up a high-tech facility in India.
“We have to set up a fab (electronic chip fabrication) unit here this year. Negotiations are on with two major firms. We will take it for Cabinet approval for that fab,” Sibal told reporters while unveiling a year agenda of the Department of Electronics and IT (DEITY).
The Union Cabinet recently approved the project to set up two semiconductor plants in the country. The project envisages investment of around Rs 25,000 crore. The exact level of government support for these plants has to be decided through negotiation with chip makers.
Setting up of these fabs are expected to bootstrap innovation and R&D, especially in the area of electronics which will help in generating employment of the order of about three crore (direct and indirect) by 2020.
Once these units came into existence, it will give a fillip to the development of electronics through domestic manufacturing of chips.