BUSINESS

Stone laid for TAPP's facility

DESTINATION T.N.: Tamil Nadu Chief Minister M. Karunanidhi pressing the remote control to lay the foundation for TAPP Semiconductor facility in Chennai on Friday. Union Minister of Communications and IT, Dayanidhi Maran (left), and founder and CEO, TAPP Semiconductor India, P. Raja Manickam, look on. Photo: Bijoy Ghosh

DESTINATION T.N.: Tamil Nadu Chief Minister M. Karunanidhi pressing the remote control to lay the foundation for TAPP Semiconductor facility in Chennai on Friday. Union Minister of Communications and IT, Dayanidhi Maran (left), and founder and CEO, TAPP Semiconductor India, P. Raja Manickam, look on. Photo: Bijoy Ghosh  



Staff Correspondent

Company's Indian arm in Sriperumbudur will invest Rs. 1,000 crore over five years

CHENNAI: Tessolve, a semiconductor test development provider, through its Indian arm TAPP Semiconductor India Pvt. Ltd., will invest about Rs. 1,000 crore over five years in its project at the Sriperumbudur SIPCOT Industrial Park near Chennai. TAPP Semiconductor India Pvt Ltd. has asked for 80 acres of land of which the State Government has so far allotted 50 acres and the balance will be allotted soon. The project will be set up within the Sriperumbudur hi-tech special economic zone.

At a function held here on Friday, the company signed a memorandum of understanding (MoU) with the State Government. The Chief Minister of Tamil Nadu, M. Karunanidhi witnessed the MoU signing and laid the foundation for the project. The Union Minister of Communications and Information Technology, Dayanidhi Maran, unveiled a model of the upcoming facility.

Mr. Karunanidhi said that with the launch of this project for indigenous assembly and production of semiconductors, Tamil Nadu had become a prime destination for the semi-conductor industry in India. Apart from creating semiconductor capability in Tamil Nadu, this project would further enhance the attractiveness of Chennai for new investments in the electronics hardware sector.

The Chief Minister said, "Tessolve's decision to come to Chennai was due to the positive investment climate, quality of manpower, strong and diversified industry base, good infrastructure and above all, proactive support of the State and Central governments. The investment in the semiconductor industry has gone up to Rs. 1,655 crore in the last three to four months."

The Chief Minister said the establishment of plants in Sriperumbudur by global majors like Nokia of Finland, Flextronics of Singapore and Foxconn of Taiwan had created a `turning point' in the history of industrialisation of Tamil Nadu. The State, which occupied a pride of place in software, had now become a major centre of electronics hardware, too, he said.

The Founder and Chief Executive Officer, TAPP Semiconductor India Pvt Ltd., P. Raja Manickam, said that of the total Rs. 1,000 crore, the company would initially invest Rs. 350-400 crore, of which 40 per cent would be equity. The funding would be through venture capitalists and private capital.

Mr. Manickam said the facility would have a capacity to handle five lakh integrated circuits (ICs) a day to start with and down the line it would be able to handle three million ICs a day. It would employ over 1,700 people besides providing indirect employment to over 5,000 people. The building would be ready by March 2007. The company would move the equipment by mid 2007 and production would start during July 2007.

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