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Product category: Microprocessors, Microcontrollers and DSPs
News Release from: Infineon Technologies
Edited by the Electronicstalk Editorial Team on 30 March 2007

Process technology to
kick-start Indian IC startup

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Infineon Technologies is to license its 130nm CMOS technology to the Hindustan Semiconductor Manufacturing Corporation

Infineon Technologies has signed a memorandum of understanding with the Hindustan semiconductor manufacturing Corporation (HSMC), a newly established semiconductor company, to license its leading-edge 130nm CMOS process technology. This MoU will help build a foundation for the production of integrated circuits for mobile phones, ID cards and automotives in India for the Indian market.

This move will further strengthen Infineon's position as a leading player in the Indian semiconductor market where it has been active for ten years.

According to the MoU, Infineon will license its 130nm CMOS basic process technology, along with its process technologies for radio frequency, embedded Flash for chip card applications, and embedded Flash for automotive applications to HSMC.

Furthermore, Infineon will offer expertise and advice for the technology transfer, and setup of the HSMC Fab.

Infineon will also license its fully qualified and silicon/product-proven design libraries.

This will enable a faster ramp-up of product development for HSMC.

'We look forward to our co-operation with HSMC', said Dr Wolfgang Ziebart, CEO of Infineon.

'With this co-operation, we position ourselves as a reliable partner for the prosperous Indian semiconductor market'.

'By bringing our process technology to the Indian market, we help build the foundation for the production of integrated circuits for the Indian market in the years to come'.

'With our strategic direction towards the segments energy efficiency, connectivity and security, we are a perfect fit for the Indian market'.

Dr Deven Verma, Chairman of the Board of HSMC said: 'We have strategically selected Infineon, a leading supplier of chipsets for mobile phones, smart cards and automotive applications'.

'This initiative will lead India to become a destination of choice for the future of manufacturing hi-tech products'.

'While India's GDP is around 9%, the development of semiconductor manufacturing will help catapult the GDP to approximately 10-11% per year'.

The honourable Minister for Communication and Information Technology of the Government of India, Thiru Dayanidhi Maran said: 'I am very pleased that one of the world's leading semiconductor companies, Infineon Technologies, is entering into a strategic co-operation with HSMC for the fab project'.

'Most of the Infineon products have large market potential for India'.

'This is in line with my vision for the semiconductor industry'.

'The domestic demand for semiconductors is projected to reach $36 billion by 2015, riding on the booming electronic goods manufacturing in India'.

'We need the fabrication industry in India to complete the full semiconductor ecosystem'.

'Now, with a clear cut policy in place, fab units in India will attract large investments, and the state governments could take it further by attracting large players like Infineon and HSMC'.

The HSMC group plans to set up two semiconductor manufacturing facilities in India.

The first fab will require an investment of approximately $1 billion and will produce chips on 8in wafers.

The second fab will be for more advanced 12in wafers requiring an investment of $3.2 to $3.5 billion.

First products from HSMC are expected within two years.

'By bringing Infineon as a technology partner, HSMC aims to further facilitate innovate designs by Indian engineers and augment the development of affordable new products within reach of the common man', said Dr Verma.

'The current perception in the world is that India Inc is for software development and design, while China is for hardware manufacturing'.

'We want to change this perception and have decided to establish the Semiconductor foundry'.

'This will be the single most gratifying achievement for us NRIs (nonresident Indians)'.

The Indian semiconductor industry was established about 30 years ago.

Since then, nearly 200 semiconductor companies have opened offices in India mainly in the chip design arena.

Infineon India has 600 employees working in the hardware design and software development in Bangalore, where operations started in 1997.

According to a recent study by the India Semiconductor Association and Frost and Sullivan, the semiconductor market in India is expected to grow from $3.25 billion in 2006 to $36 billion in 2015.

This growth rises from the surging demand for consumer electronics, wireless communications and automotive products, as well as growth in the semiconductor design industry.

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