Accenture Plc : India Department of Electronics & Information Technology Selects Accenture To Review Semiconductor Fabrication Proposals
06/05/2012| 05:35am US/Eastern
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The Government of India Department
of Electronics & Information Technology (DeitY) has selected Accenture
(NYSE: ACN) to review investment proposals from global technology
providers and investors interested in building semiconductor fabrication
units (fabs) in India.
Semiconductor fabrication is an essential requirement for the domestic
manufacture of electronics, and the government has set a goal of
attracting investments of between $7 billion and $10 billion. The
government is seeking companies that can offer technology
expertise and investment for setting up semiconductor wafer
fabrication units in the country.
"With an investment scope of billions of U.S. dollars, this strategic
project holds considerable promise for Indian manufacturing," said
Managing Director Krishna
Giri, who leads Accenture's Health & Public Services business in
India. "By bringing together investors, manufacturers and the government
of India, this initiative will help build the critical collaboration
that is needed to bridge the gap in domestic semiconductor production."
A high-level government committee has recommended supporting investors
interested in establishing semiconductor wafer fabs to manufacture chips
in India to increase capacity for India's growing domestic demand. India
has emerged as a key center for chip design, as the country's current
electronics hardware production capacity represents 1.31 percent of
global capacity. At current growth levels, domestic production of
semiconductors can only meet demand of $104 billion of a demand
projected to reach $400 billion by 2020.
As part of a management consulting engagement, Accenture will work in
two phases to help the government assess companies interested in
building semiconductor fabs in India. The first phase includes the
development of a template for business proposals as well as a project
appraisal template and a letter of intent detailing terms and
conditions. Accenture will then conduct a detailed assessment of the
business proposals received by DeitY. The due diligence process could
include site visits, interaction with suppliers, market surveys and
feasibility studies.
"Accenture's deep understanding of the semiconductor industry, as well
as the creation of high-performance teams, will help us support the
government's objectives," Giri said. "We look forward to working closely
with the government on this landmark initiative. Over time, the
electronic hardware industry has the potential to become a significant
contributor to India's GDP, much like the software industry is today."
Dr. Ajay Kumar, joint secretary of India's Department of Electronics &
Information Technology said, "We believe that this initiative will help
create an ecosystem for electronics system design and manufacturing in
the country."
Learn more about Accenture's work with governments delivering Public
Service for the Future.
About Accenture
Accenture is a global management consulting, technology services and
outsourcing company, with more than 246,000 people serving clients in
more than 120 countries. Combining unparalleled experience,
comprehensive capabilities across all industries and business functions,
and extensive research on the world's most successful companies,
Accenture collaborates with clients to help them become high-performance
businesses and governments. The company generated net revenues of US
$25.5 billion for the fiscal year ended Aug. 31, 2011. Its home page is www.accenture.com.
Accenture
Puja Gupta, + 91 98 1888 3851
puja.x.gupta@accenture.com
© Business Wire 2012
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