SRAM & MRAM expects to onboard SK Hynix, GlobalFoundries for chip plant in India, submit application in a week

UK-based SRAM & MRAM Group is in advanced stage of discussion with semiconductor makers SK Hynix and GlobalFoundries to collaborate for its proposed Rs 30,000 crore chip manufacturing plant and a testing facility in India, a top company official said.

SRAM & MRAM Group Chairman Sailesh Lachu Hiranandani told PTI that his group will hold majority stake in the joint venture and the application to seek the Centre’s approval for the project will be submitted within a week.

“We are only the investing partner. We are already in negotiations with SK Hynix from Korea. They are going to be our partner in India. Technical partner has to have all the IPs (Intellectual Properties). Our role is very much defined,” Hiranandani said.

SK Hynix is among the top three global memory or storage semiconductor companies.

SRAM & MRAM Group has proposed to set up a semiconductor manufacturing plant and a testing unit in Odisha.

“My vice president is in touch with them (GlobalFoundries). We might get GlobalFoundries on board,” Hiranandani said.

GlobalFoundries makes chips and its customers include Qualcomm, MediaTek, NXP etc.

Email query sent to SK Hynix and GlobalFoundries elicited no reply.

The Odisha government has already approved the proposal of SRAM & MRAM Group, which has diversified business interests across agri commodities, information technology etc.

“We went for semiconductors at the invitation of the Odisha government. Our vision is to complete the plant. India doesn’t have a semiconductor plant. We see a huge scope of the plant in India.The world is moving towards semiconductor. We will submit our application for the Centre’s subsidy within a week,” Hiranandani said.

The government has announced Rs 76,000 crore worth incentives for setting up semiconductor ecosystem in India.

It has approved US-based memory chip company Micron’s semiconductor assembly and testing facility for India that will entail an investment of USD 2.75 billion. Of this, 50 per cent financial support will come from the Centre, 20 per cent from the state and USD 825 million from the company.

Hiranandani said his company will initially begin to produce semiconductors for the automobile segment and gradually move towards other segments.

“We will have our testing facility as well. Lot of products that come from China are facing lot of rejections. All the car companies and other companies have lot of complaints because of rejections. If we have our own testing platform, the rejections will be less and at the same time we can rectify as well,” Hiranandani said.

SRAM & MRAM Group expects to start land acquisition project by Diwali, and initially invest USD 1 billion or about Rs 8,000 crore in the project.

“We have already parked USD 450 million. We will start with USD 1 billion and rest of the funds will be raised for the project. Some of the fund will be ours and rest of it will be raised. We have already tied up with Citrus Capital owned by Naveed Ahmed and we are also a joint partner with them,” Hiranandani said.