Xenitis Infotech Limited, a Kolkata-based technology company, has announced plans to set up a semiconductor chip manufacturing facility with overall investment of Rs 1,200 crore (Rs 12 billion) in FAB City coming up on the outskirts of Hyderabad.
A team led by Xenitis president and chief financial officer Ambar Mukherji called on Andhra Pradesh Chief Minister Dr Y S Rajasekhar Reddy on Thursday and discussed plans for the proposed facility for making chips for mobile phones and wafers for personal computers.
The company has long-term relationships with Taiwanese and Chinese hardware manufacturers and the move to set up the manufacturing base for chips and wafers is a logical extension.
The project will be taken up in three phases of Rs 400 crore (Rs 4 billion) each, which will be funded through debt and equity.
Xenitis is already in talks with financial institutions that have agreed to support the project.
The company is also seeking equity support from the central and state governments for the project. The chief minister assured all support from the state government, including 100 acres of land at Fab City, for the Xenitis project.
However, the Xenitis project is independent of SemIndia, which is setting up the FAB City with an outlay of $3 billion. The first phase of the Xenitis plant will be completed in 36 months from financial closure.
Xenitis has an electronic components manufacturing unit in Kolkata, which makes 1,000 personal computers per day and employs 2,000 people. The company recorded a turnover of Rs 526 crore (Rs 5.26 billion) in 2005-06 and expects to post revenues of Rs 750 crore (Rs 7.5 billion) in 2006-07.Want to discuss computer software? Join the Computer software Discussion Group
© 2025