Bhubaneswar, September 1 (Odisha.in) STG Chips Pvt. Ltd a chips manufacturer company will set up its first first Semiconductor Technology Innovation Center in the special economic zone of info city at Orissa capital Bhubaneswar.
Described as the first of its kind in India this centre will employ over 1600 engineers by the end of the completion of the project that would be done in three phases spanning over 60 months with an investment of Rs 80 crore (80 million USD), an official of the company told Odisha.in.
Chief Minister Naveen Patnaik laid the Foundation Stone for the centre on Friday. The occasion was attended by Successful Silicon valley semiconductor entrepreneur and Venture Capitalist Damodar Reddy, who is also on the Board of STG chips Pvt Ltd.
The Managing Director of STG Chips Pvt. Ltd Chandrashekar Reddy announced that the center has an objective to engage in Chip design, System and embedded software development for markets including consumer, IT, Telecommunications and emerging technologies, leveraging the manpower graduating from the engineering colleges of Orissa and Eastern India.
This technology innovation center will be a business incubator dedicated to supporting growth and development of early stage technology based businesses focused on building products for serving its Indian and Global semiconductor market.
It will provide an entrepreneurial business environment and a complete semiconductor product eco system.
STG is bringing the Silicon Valley’s successful business model, know how and expertise to India. This will be a one of a kind setup in India to incubate, design, develop and manufacture semiconductor products for the Indian and the Global markets, the company officials said.
The total semiconductor market in India is going to grow from $2.8B in 2005 to over $36B (USD) by 2015, and the total available market is going to grow from $1.4B to over $15B in the same period according to Frost and Sullivan Report.
“The semiconductor technologies are very crucial to the expansion of the Indian industry. Despite India’s strong technical manpower, the semiconductor industry is far behind due to a lack of training and a supportive environment found in the Silicon Valley.
The technology innovation center aims to bridge the gap between the innovative visions and the marketplace” Damodar Reddy, Director of STG said.
The Indian industry is facing a barrier in entering the high value-added market because of lack of the local capability of developing IC components. Today most of the electronic manufacturers outsource their critical IC components to overseas suppliers. In many cases, those who supply these IC components control the intellectual property of these critical IC components.
The proposed facility is an endeavor to bridge the existing gap and enhance value & delivery capability by developing indigenous designs, he said.
Proposed center in Bhubaneswar will be a shared facility for the groups numerous ventures including chip design, embedded system design and embedded software design, testing & development, he said.
The Bhubaneswar center will be an integral part and will collaborate with other centers across India and around the Globe. The delivery from this center will be further augmented by integration for delivery with Bangalore Hub.
This will enable the group to leverage on the existing platform in Bangalore and extend the seamless cooperation to Bhubaneswar center.
This center’s strategic objective is to become a key development center in all aspect of chip design solutions and in addition add capabilities on the software design, testing & development for its global corporate customers.
The intent to roll-out the STG expansion as benchmark to draw additional business from the group’s other business entities.
A State-of-the-Art Tech Park with Scalability proposed to be spread in about an area of 2.60 Acre here with a built up area of about 2,20 ,000 sft. built in 3 Phases in 5 years time frame.
In phase one about 80,000 sft. to be developed for creating workspace for about 600 people with an estimated investment of USD 7 Million (INR 28 Crores) and is expected to be operational in 15 months.
In phase II about 60,000 sft to be developed for creating workspace for about 450 people with an estimated investment of USD 5 Million (INR 20 Crores) and is expected to be operational in 36 months by 2010.
In phase III about 80,000 sf. to be developed for creating workspace for about 600 people with an investment of USD 8 Million (INR 32 Crores) and is expected to be operational in 60 months 2011.
The Silicon park of STG will bring in many advantages to eastern India especially Bhubaneswar.
STG will help Orissa enhance Technology market penetration in Asia and respond to the marketplace’s demand. It will create domain expertise / Knowledge Hub in VLSI field. It will provide employment of engineers in VLSI field. Our extensive chip design and EDA experience and expertise will help the state to create more opportunities in the electronic industry in the India more efficiently.
It will enhance foreign exchange earnings and the size of the economy & the ‘trickle-down’ effect of such a large investment. It will also create over 1600 direct employments.