Infineon Licenses 130nm CMOS Process Technology to Hindustan Semiconductor

Infineon Technologies AG, a global semiconductor supplier for communications, automobile, security and industry applications has signed a Memorandum of Understanding (MoU) with the Hindustan Semiconductor Mfg Corp. (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 cooperation with HSMC," said Dr. Wolfgang Ziebart, CEO, Infineon. "With this cooperation, 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, HSMC, said: "We have strategically selected Infineon, a leading supplier of chip sets 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 percent, the development of semiconductor manufacturing will help catapult the GDP to approximately 10-11 percent per year."

The Honorable Minister for Communication and Information Technology of the Government of India, Thiru Dayanidhi Maran, commented: "I am very pleased that one of the world's leading semiconductor companies, Infineon Technologies, is entering into a strategic cooperation 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 8-inch wafers. The second Fab will be for more advanced 12-inch wafers requiring an investment of $3.2 billion 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 (Non-Resident Indian).”

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