Cricket Semiconductor to set up $1 bn analog fab in MP

Cricket-Semiconductor-to-set-up-analog-fab-in-MP

Lou Hutter, CEO, Cricket Semiconductor

Cricket Semiconductor has signed an MoU (memorandum of understanding) with government of Madhya Pradesh to set up $1 billion analog fab in the state.

Cricket Semiconductor is a US-based company focused on creation of a specialty foundry in India and their goal is to establish India’s first high-volume, globally competitive production wafer fab. As semiconductors are the key component of any electronic product, the presence of a wafer fab will help in faster growth of ESDM industry in the state.

Recently, Madhya Pradesh approved Analog Semiconductor Fabrication [FAB] Investment Policy that provides for free government land, reimbursement for the cost of building the shell of the manufacturing unit, 24X7 power supply from two separate power grids and quality water supply at the doorsteps of thefab units at an internationally competitive price fixed for 10 years. With this new policy, the state government will extend support to any fab investment that exceeds Rs 3,000 crore in the state.

“It is our great pleasure to announce the intent of US based Cricket Semiconductor to set up India’s first analog fab unit in Madhya Pradesh. The government of Madhya Pradesh aims for the state to serve as the heart of the Indian ecosystem for the ESDM sector. This is our commitment to achieving the goal of Make in India through a strong manufacturing sector that shall provide jobs to our citizens,” said Bhupendra Singh, minister for science and technology, government of Madhya Pradesh.

Emphasizing the need for fabs in India, Ashok Chandak, chairman, IESA said, “The fab decision along with two approved EMC’s will bring Madhya Pradesh state at the center stage of global ESDM ecosystem with immense potential.”

“We are confident that we can establish a high-volume, globally competitive specialty wafer fab in India. We are thankful to IESA for their strategic insights and support for this project and help in finalizing the MoU with the Government of Madhya Pradesh towards making this a reality,” said Lou Hutter, CEO, Cricket Semiconductor.

“The project outlay is at around Rs 6,000 crores and is less than 1/10th of a leading edge digital fab. The emphasis will be on processes and technologies that align to Indian as well as global requirements such as industrial and automotive. Importantly, the cost of analog/power semiconductor product development is significantly less than digital semiconductor products. This lowers the investment entry barrier for Indian entrepreneurs to bring innovative products to the market, stimulating the ESDM ecosystem and leading to the creation of many thousands of jobs,” added Hutter.

Analog/mixed signal chips are used in the functioning of mobile phones, UPS inverters, smart meters, automotive and industrial production and thousands of other electronic products; therefore the chips developed at an analog fab cater to various industry segments. IoT is very dependent on analog/mixed signal and this factor is spurring the prominence of analog fab in today’s context.

IESA (India Electronics & Semiconductor Association), the premier trade body representing the Indian ESDM (Electronic System Design and Manufacturing) industry provided a strategic roadmap to the company for locating the proposed unit in the country. The industry body is also helping Madhya Pradesh for their investment promotion initiatives.

The creation of this fab ecosystem coupled with the products and systems value chain is expected to create close to 450,000 new jobs, making a potential future economic impact of $40B, over its project life span and reduce electronics import burden for the nation.

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