Nano-Tech Silicon India Pvt Ltd (NSTI), which plans to set up a mega semiconductor fab facility (a silicon wafer manufacturing plant) in Andhra Pradesh, hopes to complete the first round of financing and finalise a technology partner within the next two months. The technology partner will invest up to 20 per cent of the total equity of $ 160 million, according to Or P June Min, one of the main promoters of NSTI. Speaking at the ground breaking ceremony for the semi-conductor fab facility, which is expected to cost over $ 12 billion in the next 15-17 years, Dr Min said, "The Indian contribution of the total investment would be around $ 310 million.
NTSI was incorporated on April 25, 2005 by seed financing; with Dr Min investing 60 per cent of the equity, the Andhra Pradesh Industrial Infrastructure Corporation investing 20 per cent and private investors - Jai Ramesh and M Prabhakara Rao investing 20 per cent.
According to a company press release, NSTI, one of the leading Indian companies could invest up to 25 per cent of the total equity of $ 160 million. A leading Indian bank has accepted to syndicate $ 290 million debt financing. The demand for semi-conductor products reached $ 1.2 billion by the end of 2004 in India. The fab facility would contribute $ 210 million to the gross domestic product of Andhra Pradesh, the release added.