November 29, 2004 – India’s first silicon chip manufacturing facility would be set up on the outskirts of Hyderabad with an initial investment of US$600 million, its promoter and chairman of South Korea-based Intellect Inc. Jun Min, said on Friday, according to Asia Pulse Pte Ltd.

A memorandum of understanding would be signed with the Andhra Pradesh government next week and the plant was expected to become operational in 2006, Min told reporters in an informal chat on the sidelines of the two-day India e-Hardware Summit 2004.

The state-of-the-art facility, to be built on a 50-acre site at Shamshabad near the proposed international airport, would be set up under the aegis of a new company called India Semiconductor Manufacturing Company. The chip fabrication plant is expected to employ over 10,000 people.

Earlier, inaugurating the summit, organized by the Confederation of Indian Industry, Andhra Pradesh Chief Minister Y. S. Rajasekhar Reddy said his government was committed to promoting software and hardware sectors and assured all possible assistance to the investors. “We want to develop Hyderabad as a major IT destination in the world,” Reddy said.