IMPLEMENTATION OF WAFER FABRICATION PLANT IN INDIA

Submitted to CHRIST (Deemed to be University) in partial fulfillment Of the requirements

for the award of the degree of
Bachelor of Business Administration (Honors)

By
SANYAM HARLALKA
Registration Number 2023230

SCHOOL OF BUSINESS AND MANAGEMENT

CHRIST (DEEMED TO BE UNIVERSITY)
BGR CAMPUS
BANNERGHATTA ROAD,
HULIMAVU
BENGALURU - 560076

2022 - 2023

1
 DECLARATION

I, Sanyam Harlalka, hereby declare that the business plan titled “IMPLEMENTATION OF

WAFER FABRICATION PLANT IN INDIA” submitted to CHRIST (Deemed to be

University), Bengaluru in partial fulfilment of the requirements for the award of the Degree of

Bachelor of Business Administration (Honors) is a record of original and independent study

undertaken by me during the academic year 2022–2023 under the supervision and guidance of Dr.

Bharath Sampath, School of Business and Management, CHRIST (Deemed to be

University), BGR Campus, Bengaluru and it has not formed the basis for the award of any

Degree/ Diploma/ Associate ship/ Fellowship or other similar title of recognition to any candidate

of any University.

Place: Bengaluru

Date:

SANYAM HARLALKA

Register Number: 2023230

2
 CERTIFICATE/APPROVAL LETTER OF DISSERTATION GUIDE;

This is to certify that the Business plan, titled “IMPLEMENTATION OF WAFER

FABRICATION PLANT IN INDIA,” submitted to CHRIST ( Deemed to be University), in
partial fulfilment of the requirements for the award of the Degree of Bachelor of Business
Administration (Honors) is a record of original study undertaken by Sanyam Harlalka
(Registration Number: 2023230), during the academic year 2022 – 2023 in the School of Business
Studies and Management at CHRIST (Deemed to be University), Bengaluru, under my
supervision and guidance. The research paper has not formed the basis for the award of any
Degree/ Diploma/ Associate ship/ Fellowship or other similar title of recognition to any candidate
of this or any other University or Institution.

Place: Bengaluru

Date:

Dr. Bharath Sampath

Assistant Professor

School of Business and Management

Christ (Deemed to be University)

Bannerghatta Road, Hulimavu

Bengaluru, 560076

3
 ACKNOWLEDGEMENTS

I express my special thanks to Dr. Bharath Sampath, School of Business and Management,
CHRIST (Deemed to be University), Bengaluru for taking time to guide and mentor me. His
expert advice and constant motivation helped me to conduct the study in a systematic and orderly
manner.
I would like to express my deepest gratitude to Dr. Shiju Sebastian for giving me the path to
conduct my business plan.
I would also like to thank Dr. (Fr) Abraham V M, Vice Chancellor, CHRIST (Deemed to be
University), Bengaluru, for having provided an opportunity to carry out this business plan as part
of my curriculum of Bachelor of Business Administration Honours.
I would like to convey my gratitude to Fr Biju K C, Director, Dr Jyothi Kumar, Dean, Dr. Rashmi
Rai, HOD, School of Business and Management, CHRIST (Deemed to be University), Bengaluru
for providing me the opportunity and the support to carry out this project. This was instrumental
in my journey of studying and understanding the concept of entrepreneurship, especially in the
semiconductor sector.
I would like to also sincerely thank all the individuals involved in this project. Their time and
valuable conversations were extremely helpful in providing the required knowledge to make this
project a great experience and reality.
Finally, I would like to thank my parents and friends for their constant help and support. Their
motivation and advice were very helpful in enabling me to conduct this project and bring it to
completion.

Sanyam Harlalka

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 Table of Contents
Contents
Executive Summary………………………………………………………………………..…..7
1. Introduction…………………………………………………………………………….….....8
1.2 Problem Explanation and Mission………….……………………………………………....9
1.3 The Change Factor………………..………………………………………………………...10
1.4 Key Elements of Success…………………………………………………………………...11
1.5 Business Model………...…………………………………………………………………...12
1.6 Production Process……..…………………………………………………………………...13
1.7 Business Model Canvas..…………………………………………………………………...17

2. Environmental Analysis………………….…...……………………………………………..19
2.1 Industry Analysis…………………………...……………………………………………...19
2.2 Competitor Analysis…...……………………….………………………………………….20
2.3 Competitive Edge.……..………………………….…………………………………….....21

3. Strategic Plan.. ……………………………….…………………………………………….22

3.1 Growth Strategy…………………………………………………………………………...22
3.2 Pricing Strategy…...……………………………………………………………………….23
3.3 Marketing Strategy.……..………………...…………………………………………….....24
3.4 Securing the Market…...…………………..……………………………………………….25
3.5 Risk Analysis.……..…………………………………………………………………….....26
3.6 Milestones to be achieved…...……………….…………………………………………….27

4. Financial Plan.. …………………………….……………….……………………….…….29

4.1 Revenues………………………………………...……….……………………….……....29
4.2 Expenses…...…………………………………………………………………….……….29
4.3 5-Year Projection.……..……………...………………………………………….…….....30
4.4 Projected Annual Income Statement………..…………………………………………….32
4.5 Projected Balance Sheet ……………………………………………………………….....33

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5. Ethics & Sustainability ………………………………………………………………….....34
References………………………………………………………………………………..........37
Annexures……………………………………………….………………………………….....39

LIST OF FIGURES

Fig 1.1: Government Of India SPECS Scheme……………………………………….…….11

Fig 1.2: Manufacturing Process Of Semiconductor Process………………………….…….12

Fig. 4.1: Employment Generated…………………...………………………………...……..30

Fig.4.2: Environmental Disposal And Treatment……………...……………………………36

ANNEXURE FIGURES

Fig. 5.1: 300 Mm Fab Make-Up Air- Environmental Amc……………………..…………..50

Fig. 6.1: Di Water Production / Ro Reclaim………………………………..……………….52

Fig. 6.2: Water Conservation………...…………………………….………………………..52

Fig. 7.1: Fluoride/Heavy Metal Treatment Plant……………………….……….…………..56

Fig.7.2 : Acid Slurry Treatment Plant...……………….……….……..……………………..57

Fig. 7.3: Base Slurry Treatment Plant………………………………………….……………58

Fig. 8.1: Gas Turboelectric Power………………………………….………………………..64

LIST OF TABLES

TABLE 1: BUSINESS MODEL CANVAS……………...……………………………….18

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 EXECUTIVE SUMMARY

The Indian semiconductor industry is one of the fastest growing markets in the world, with a
growing demand for high-quality semiconductor products and services. A semiconductor foundry
in India has the potential to tap into this growth by providing advanced wafer fabrication services
to customers in various sectors, such as automotive, consumer, industrial, and medical.

The key success factors for a semiconductor foundry in India include a strong focus on research
and development, access to state-of-the-art manufacturing facilities and equipment, a highly
skilled workforce, and a commitment to meeting the ethical and sustainability norms required by
the Indian legal system.

To achieve success, the foundry should develop a clear growth strategy that includes a detailed
market analysis, a comprehensive understanding of the competitive landscape, and a solid
business plan that outlines the company's goals, financial projections, and marketing and sales
strategy. Additionally, the foundry should work to build strong relationships with its customers
and suppliers, as well as establish a reputation for delivering high-quality products and services.

With the right combination of these key success factors, a semiconductor foundry in India has the
potential to become a major player in the global semiconductor market, and to help drive the
continued growth of the Indian economy.

This business plan aims to carry out all the processes stated above with a project report on the
feasibility of the plan in India for setting up a semiconductor foundry for Light detection and
ranging (LIDAR) chips for automobile sector.

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CHAPTER 1- INTRODUCTION

The plan is to open up a semiconductor chip production plant for automobile LIDAR (Light
detection and ranging) system in India. We don't need to tell you that modern digital devices –
smartphones, PCs, gaming consoles and more – are powerful pieces of technology. Much of this
power comes from microchips, some of the smallest but most detailed pieces of tech that exist. In
2020, more than one trillion chips were manufactured around the world. That's about 130 chips for
every person on earth. But despite what their widespread presence might suggest, manufacturing a
microchip is no mean feat. To make any chip, numerous processes play a role.

Investment in semiconductor manufacturing provides an economic impact through employment,

equipment purchases and construction facilities. It also creates an impact from the
commercialization of products created by the foundry including opportunities for export. Finally,
there is the market spillover effect due to the productivity gains made possible by the foundry on
other industries. The combined effect of these factors has been estimated (GDP growth multiplier)
to be in the range of 21-23 times the original expenditure in the foundry manufacturing, over the
next 10 years.

The location selected for the foundry, has a number of significant advantages vis-à-vis human
capital availability and economic and infrastructure considerations. In the Noida-Greater Noida
region, there are approximately 5 Universities and 25 engineering institutes (with approximate
student strength of 75,000) which can provide skillful employees for the foundry. Major
semiconductor players in production of semiconductor chips such as ST Microelectronics,
Atrenta, Sasken Communication Technologies, Freescale, Interra Systems, Cadence and Motorola
are present in the area. Further, as of January 2009, Moser Baer has started photovoltaic
production operations in its Greater Noida manufacturing plant. Hence the availability of
complementary industries and companies along with academic institutions will enable creation of
the right conditions for innovations in technologies and benefits which can ultimately drive
economic growth and create spill-over effects in this region.

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PROBLEM EXPLANATION

● Amid heightened cross-strait tensions between China and Taiwan, there is a shortage of
semiconductor chips across the world, fueling a technological cold war between the US
and China. The counter-measures to hinder China's technological ambitions, the USA
administration recently introduced a fresh set of guidelines for American companies that
trade with China. The first one is that the US and most developed countries are worried
that China is weaponizing semiconductors and using them for destructive purposes. Lately,
the surging cyber-attacks from Chinese state-sponsored hackers have raised concerns in
Washington. Second, the US is also concerned about China's use of semiconductors or
chips for military purposes. For these reasons, the US has kept up the pressure on Chinese
companies.

● The group includes Taiwan Semiconductor Manufacturing Co. Ltd, the world's largest
contract chip maker, South Korean memory chip giants Samsung Electronics Co. Ltd. and
SK Hynix, and key Japanese semiconductor materials and equipment suppliers. These
developments come amid the threat to national security, meaning that American
companies are banned from dealing and trading with China for the next couple of years in
this sector. In short, US-based firms will not be allowed to invest or develop anything
related to chips, particularly in China.

● These problems will be solved by opening up a manufacturing plant of semiconductor

chips in India because of its solid trade relations and new government schemes which
reduces the production cost.

MISSION

Our mission is to provide our customers with the highest quality semiconductor products and
services, while operating in an ethical and sustainable manner. We aim to be a leader in the Indian
9
semiconductor market, and to contribute to the growth and development of the Indian economy.
By investing in cutting-edge technology and talented employees, we will continuously innovate
and deliver solutions that meet the evolving needs of our customers

THE CHANGE FACTORS

The change factor is describing the various alternative changes into which the foundry can turn to
in case of any problem or issue occurring due to external or internal reasons. The factors or the
alternative ways the foundry can adapt to manufacture for industries are as follows:

 Agriculture – LIDAR can help agriculture technology (Agriculture technology) companies

pinpoint areas with optimal sunshine for more efficient growing. It also can be used to
train machine learning systems to identify crops that need water or fertilizer.

 Archeology – This technology has revolutionized the world of archeology, helping experts
discover hidden structures around the globe. There are two archeologists from the
University of Colorado who are on a mission to scan the entire planet with LIDAR.

 Astronomy – NASA (U.S. National Aeronautics and Space Administration) used LIDAR
technology to explore Mars. They were able to create a topographic map and detect snow
falling in the atmosphere.

 Climate change – Climate scientists use LIDAR to study and track changes in the
atmosphere. Researchers in Germany have developed an airborne LIDAR system that can
track atmospheric gases and may even be usable from space. Botanists are using it to track
patterns in changes to forested areas. LIDAR also is used to calculate changes in glaciers
over time.

 Land management – Land management organizations can monitor land resources in real-
time, allowing for faster and more efficient mapping compared to aerial surveys. They also

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 use it in disaster assessment, early warning systems, emergency response (e.g., to fight
forest fires), and location-based investigations.

 Land mapping – The National Oceanic and Atmospheric Administration (NOAA) uses
LIDAR to create accurate shoreline maps and digital elevation models for GIS (geographic
information systems). They also use it to assist with emergency response missions.

 Meteorology – Since it was first used, LIDAR has helped meteorologists study clouds and
their patterns by using the wavelength to detect small particles in the cloud. There are
many different types of LIDAR used in meteorology.

 Renewable Energy – LIDAR can be used to identify basic requirements for harnessing
solar energy, such as optimal panel positioning. It is also used to calculate direction and
wind speed to allow the operators of wind farms to build and place turbines.

 Robotics – LIDAR is used to equip robots with mapping and navigation capabilities. For
self-driving cars, the technology is used to train an autonomous system to recognize the
distance between the vehicle and other objects in the environment.

KEY ELEMENTS FOR SUCCESS:

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The SPECS scheme initiative taken by the government is the major key element of success for the
business as it provides 25% incentive on the capital expenditure incurred by the firm and it will be
a huge cost reduction in achieving break-even faster alongside subsequent decrease in
manufacturing price.

BUSINESS MODEL

MANUFACTURING PROCESS:

Fig 1.2: Manufacturing Process of semiconductor process 1

The business production model works on ON-DEMAND-PRODUCTION. Each chip has its
unique features which needs to be patented and given to the producers or wafer fabrication center
for its production.

Our plan will include using that patented design for producing the chip for the design owner.

1
https://www.accretech.jp/english/product/semicon/about.html
12
 PRODUCTION PROCESS

1. Cleaning: The silicon wafers forming the

base of the semiconductor are cleaned. Even
slight contamination of a wafer will cause
defects in the circuit. Therefore, chemical
agents are used to remove all contamination,
from ultra-fine particles to minute amounts of
organic or metallic residues generated in the
production process, or unwanted natural
oxide layers generated due to exposure to
air.

2. Film Deposition

Thin film layers of silicon oxide, aluminum and other

metals that will become the circuit materials are formed on the wafer. There are a variety of ways
to form these thin films, including "sputtering", in which a target material, such as aluminum or
other metal, is bombarded with ions, which knocks off atoms and molecules that are then
deposited on the wafer surface, "electrodeposition’, which is used to form copper wire layers
(copper interconnect), chemical vapor deposition (CVD), in which special gases are mixed to
cause a chemical reaction that forms a vapor containing the desired material, and then the
molecules generated in the reaction are deposited onto the wafer surface to form a film, and
thermal oxidation, in which the wafer is heated to form a silicon oxide film on the wafer surface.

3. Post-deposition Cleaning

Minute particles adhering to the wafer after the film

deposition are removed using brushes or Nano-spray
with deionized water, or other physical cleaning
methods.

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4. Resist Coating

The wafer surface is coated with resist (photosensitive chemical). Then the wafer is spun, causing
a uniform layer of resist to be formed on the wafer surface by centrifugal force.

5. Exposure

The wafer is exposed using short wavelength deep

ultraviolet radiation projected through a mask on which
the circuit pattern has been formed. Only the areas of
the resist layer that are exposed to the light undergo a
structural change, thereby transferring the pattern to the
wafer. There are a variety of exposure units, including steppers, which expose several chips at a
time, and scanners, which expose the wafer using a slit through which light is projected onto the
wafer.

6. Development

Developer is sprayed onto the wafer, dissolving the

areas exposed to the light and revealing the thin film
on the wafer surface. The remain-ing resist areas that
are not exposed at this point become the mask for the
next etching process, and that resist pattern becomes
the pattern on the layer below.

7. Etching

In wet etching, the exposed thin film on the surface layer

is dissolved using chemicals, such as hydrofluoric acid or
phosphoric acid, and removed. This forms the pattern.
14
There is also a dry etching method in which the wafer surface is bombarded with ionized atoms to
remove the film layer.

8. Implantation of Impurities

In order to give the silicon substrate semiconducting properties, impurities, such as phosphor or
boron ions, are implanted in the wafers.

9. Activation

Heat processing is performed using flash lamps or laser

radiation to activate the doped ions implanted in the wafer.
Instantaneous activation is required to create the micro
transistors on the substrate.

10. Resist Stripping

Resist can be stripped off at a wet station, which uses

chemicals that remove the resist, or by ashing, which
removes the resist by inducing a chemical reaction using
gases. The wafer is cleaned after the ashing.

11. Assembly

The wafer is separated into individual chips

(dicing), the chips are connected to a metal frame
called a lead frame using metal wire (wire
bonding) and then enclosed in epoxy resin
material(packaging).
2

2
https://www.screen.co.jp/spe/en/process
15
Business Model Canvas
Key Partners Key Activities Value Propositions
Customer Relationships
Customer Segments

- OMNEX Group -Manufacturing -To serve our -Quality Most of the targeted
customers automobile
- Semiconductor -Assembly -Logistically
with all their companies with
Laboratory of near to their
-Supply Chain manufacturing need in foundries for
India (SCL) facilities
structure and and logistics LIDAR
- Ford Motors management needs. Customer manufacturing in
Assistance with India are:
- MG Motors -Innovation
personal
- Ford motors
- Ministry of -Quality Control -Full range of communication
Information and integrated channel - MG motors
-Engineering
Technology circuit
Price based - Toyota
manufacturer
- V3 Moulding production on
and assembler - Maruti
Private Limited contractual way
(Hosur) - Hyundai
Key Resources Channels
- Dautson Group -India’s first - - Volkswagen
Size and Corporate
(EPC) automotive
scalability of offices in Surat,
sector LIDAR
- Mr. Samrat operation Gujarat and in
semiconductu
Sarkar (Director Mumbai,
First Mover r foundry
and POC of Maharashtra
Advantage
Dautson)
Plant and
Capacity of
- Dr. Shiju production site
manufacturing
Sebastian
24/7 Business contact
(Mentor)
channel
Government
subsidy through Dedicated

16
 SPECS initiative employee for
to reduce cost by each client
25%

Cost Structure Revenue Streams

- Cost of components and raw materials like Contract manufacturing

silicon wafer
Licensing
- Chemical purchases for procedural process
Outsourcing services
in manufacturing
Logistical services charge
- Equipment and manufacturing technology
Chemical regeneration selling profits
- Engineering offices expense

- Employee and training costs

- Other Factors of production costs

TABLE 1: BUSINESS MODEL CANVAS

CHAPTER 2- ENVIRONMENTAL ANALYSIS

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Industry analysis

An industry analysis for our semiconductor foundry in India should focus on the following key
factors:

1. Market size and growth: The semiconductor industry in India has been growing at a rapid
pace, and it is expected to continue to grow in the coming years. Market research would be
conducted to understand the size of the market, its growth rate, and the trends driving
demand.

2. Competition: The semiconductor foundry industry in India is highly competitive, with both
domestic and international players vying for market share. A competitor analysis as given
below is conducted to understand the strengths and weaknesses of existing players, and to
identify opportunities for differentiation.

3. Market segments: The market can be divided into various segments, such as automotive,
consumer, industrial, and medical. The needs and preferences of different customer
segments is important in order to develop a tailored offering which would be done
according to the client requirement like Ford gave there and MG motors too.

4. Customer needs: Understanding customer needs and preferences is critical in order to

develop a product or service offering that meets the evolving needs of the market. This
requires engaging with customers to understand their needs and preferences.

5. Technology trends: The semiconductor industry is driven by advancements in technology,

and staying up-to-date with the latest trends and innovations is essential. Regular
monitoring of technology trends is done to ensure that the foundry is able to offer cutting-
edge products and services.

6. Legal and regulatory environment: The legal and regulatory environment in India can
impact the operations of a semiconductor foundry. It is important to comply the laws and
regulations governing the industry and to ensure that the foundry is in order with all
relevant regulations like Environmental law, etc.

By considering these key factors, our foundry can develop a comprehensive understanding of the
industry and position itself to succeed in a highly competitive market.

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Competitor analysis

India has a rapidly growing semiconductor industry, with several companies operating in the
space. Some of the key competitors in the Indian semiconductor foundry market include:

1. M/S. Jazz Semiconductor: Jazz Semiconductor is a leading semiconductor foundry in

India, providing wafer fabrication services to customers in the automotive, consumer,
industrial, and medical markets.

2. M/S. Signet: is a leading Indian semiconductor foundry that specializes in the production
of integrated circuits using advanced CMOS and BiCMOS technologies.

3. M/S. SemIndia: is a leading semiconductor foundry in India that provides advanced

semiconductor manufacturing services to customers worldwide.

4. M/S. WaferTech: is a leading semiconductor foundry in India that provides wafer

fabrication services to customers in the consumer, and industrial markets.

5. M/S. STMicroelectronics: is a global semiconductor company with a significant presence

in India. It provides a wide range of semiconductor products and services to customers in
the automotive, consumer, and industrial markets.

6. M/S. GlobalFoundries: is a leading semiconductor foundry with a significant presence in

India. They provide advanced semiconductor manufacturing services to customers
worldwide.

There are various firms in India which manufactures semiconductor chips but currently none of
those have expanded into producing for the automobile sector due to the purchasing of those is
usually done with Taiwanese foundry of TSMC and Qualcomm by majority of the automotive
brands.

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Competitive edge

In order to gain a competitive edge in the semiconductor foundry industry in India, our
company could focus on the following factors:

- Technology: Investing in the latest technology and continuously innovating can give a
foundry a competitive edge by enabling it to offer cutting-edge products and services to its
customers.

- Cost competitiveness: Maintaining a low-cost structure can help the foundry to offer
competitive pricing, which can be a key differentiator in this highly competitive market.

- Customer service: Providing exceptional customer service and support can help to build
strong relationships with customers, which can result in repeat business and referrals.

- Quality: Ensuring that products and services meet high quality standards can help to
establish a reputation for reliability and build trust with customers.

- Speed of delivery: Being able to deliver products and services quickly can help to meet
customer needs and increase customer satisfaction.

- Local presence: Having a local presence can be a key competitive advantage, as it enables
the foundry to be closer to its customers and respond more quickly to their needs.

- Talent: Attracting and retaining talented employees can help to drive innovation and
ensure that a foundry is able to stay ahead of the curve in terms of technology and market
trends.

Though local presence would be a weakness factor as the foundry cannot expand
geographically from its production state but we can open corporate offices in cities like
Mumbai, Delhi and Bangalore to offer customer convenance. By focusing on these factors, a
semiconductor foundry in India can establish a competitive edge and differentiate itself from
its competitors in the market.

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 CHAPTER 3 STRATEGIC PLAN

GROWTH STRATEGY

There are several growth strategies that the foundry can pursue in order to expand its business and
increase market share. Some of these strategies include:

1. Investing in advanced technology: By investing in the latest semiconductor manufacturing

technology, a foundry can produce more advanced and complex chips, which can
command higher prices and attract more customers.

2. Diversifying product offerings: By offering a wide range of products, such as memory,

microcontrollers, and image sensors, a foundry can attract a diverse customer base and
reduce its reliance on a single product or market.

3. Focusing on specific market segments: By targeting specific market segments, like its
doing with automotive sector rather than going all in industrial, or IoT, foundry can
differentiate itself from competitors and gain a competitive advantage.

4. Building strong relationships with customers and partners: By building strong relationships
with customers and partners, the foundry can ensure a steady flow of business and gain
valuable insights into industry trends and customer needs.

5. Developing a skilled workforce: By investing in employee training and development,

foundry can build a skilled and productive workforce that can help it stay competitive.

6. Government Support: India Government has been providing support in terms of subsidies
and tax benefits to attract companies to establish their units in India, which will help the
foundry to scale their business, as well as tap into domestic market.

7. Expanding into new markets: The foundry can explore new geographical markets, such as
Southeast Asia and China, where there is growing demand for semiconductor products.

8. Developing specialized capabilities: The foundry can develop specialized capabilities,

such as advanced packaging or specialized materials, to cater to the needs of specific
customer segments.
21
 9. Diversifying its product portfolio: The foundry can diversify its product portfolio by
adding new products or services, such as Internet of Things (IoT) devices or automotive
semiconductors.

10. Building strategic partnerships: The foundry can build strategic partnerships with other
companies, such as equipment suppliers or design firms, to expand its capabilities and
reach.

It's important to note that different growth strategies will be more or less appropriate depending on
the specific circumstances of the foundry, such as its current size, capabilities, and market
position.

PRICING STRATEGY

A pricing strategy for the semiconductor foundry in India would depend on several factors,
including the foundry's cost structure, the market conditions, and the competitive landscape. Some
potential pricing strategies that foundry could consider include:

1. Cost-plus pricing: This strategy involves setting prices by adding a markup to the cost of
production. This strategy is typically used when the foundry is targeting price-sensitive
customers and wants to ensure profitability.

2. Value-based pricing: This strategy involves setting prices based on the perceived value of
the product to the customer. This strategy is typically used when the foundry is targeting
customers who are willing to pay a premium for high-quality products.

3. Penetration pricing: This strategy involves setting low prices initially to gain market share.
This strategy is typically used when the foundry is entering a new market and wants to
establish itself quickly.

4. Skimming pricing: This strategy involves setting high prices initially to generate high
profits from early adopters. This strategy is typically used when the foundry is introducing
a new product with a unique feature.

22
 5. Dynamic pricing: This strategy involves adjusting prices based on market conditions, such
as supply and demand. This strategy is typically used when the foundry wants to maximize
profits in a highly competitive market.

Foundry would also consider the regulatory environment in India, such as import duty, taxes,
and subsidies which could affect the pricing of its chips.

Apart from these there will be a combination of strategies which will be used by the foundry to
capture better chunk of the market in terms of its share and clientele base.

MARKETING STRATEGY

A marketing strategy for the semiconductor foundry in India will likely involve a combination of
different tactics, depending on the foundry's target market, competitive environment, and
resources. Some potential marketing strategies that the foundry could consider include:

 Building brand awareness: The foundry can invest in marketing campaigns, events, and
other initiatives to increase awareness of its brand among potential customers.

 Developing relationships with key customers: The foundry can focus on building long-
term relationships with key customers, such as large electronics manufacturers, by
providing exceptional service and tailored solutions.

 Leveraging digital marketing: The foundry can take advantage of digital marketing
channels, such as social media and search engine optimization, to reach a wider audience
and generate leads.

 Networking and trade shows: Participating in trade shows or industry events can help the
foundry network with potential customers, partners, and suppliers.

23
  Technical partnership and collaboration: The foundry can form technical partnerships and
collaboration agreements with other companies, such as equipment suppliers, design firms,
or research institutions, to enhance its capabilities and reach.

 Offering customized services : The foundry can offer customized services such as
specialized packaging, advanced technologies, and specialized materials to target specific
customer segments, and differentiate itself from competitors.

This marketing technique will be the most useful rather than spending on Television ads or
newspaper marketing as the foundry is operating on B2B model and does not require these
traditional methods.

SECURING THE MARKET (first mover advantage, building brand equity, innovating
continuously)

Securing the market will likely involve a combination of different tactics, tailored to the specific
circumstances of the foundry. Some potential strategies that the foundry could consider include:

 Developing a strong reputation: The foundry can focus on developing a strong reputation
within the industry, by delivering high-quality products and services, and building
relationships with customers and suppliers.

 Focusing on niche markets: The foundry can focus on niche markets, such as IoT devices
or automotive semiconductors, where it can develop specialized capabilities and
differentiate itself from competitors.

 Building a strong supply chain: The foundry can build a strong supply chain, by securing
long-term contracts with key suppliers, and developing relationships with logistics
companies to ensure timely delivery of products.

 Investing in research and development: The foundry can invest in research and
development, to stay ahead of industry trends and develop new products and services.

 Building strategic partnerships: The foundry can build strategic partnerships with other
companies, such as equipment suppliers, to gain access to new technologies and expand its
capabilities.

24
  Offering competitive pricing : The foundry should have competitive pricing as it will help
to attract customers and secure the market

 Offering excellent customer service: The foundry should offer excellent customer service
and support, to build trust and loyalty among customers.

It will be crucial for our firm to secure the market as upon announcement of the arrival in this
market, competitors will surely follow up to eat up the rest of the pie.

RISK ANALYSIS

Risk analysis is an important aspect of running a semiconductor foundry in India, as it helps

identify potential threats and vulnerabilities that could impact the business. Some potential risks
that a may need to consider include:

1. Market risks: Changes in market conditions, such as a downturn in the economy or

increased competition, can impact the foundry's sales and profitability.

2. Technology risks: Advances in technology, such as new materials or production processes,

can render existing products and services obsolete.

3. Operational risks: Disruptions in the foundry's operations, such as equipment failures or

supply chain disruptions, can impact production and delivery of products.

4. Compliance risks: The foundry must comply with a wide range of regulations, including
environmental, safety, and labour laws, which can change over time.

5. Cybersecurity risks: The foundry's systems, data, and intellectual property may be
vulnerable to cyber-attacks.

6. Natural disasters: Natural disasters such as floods, earthquakes, etc. can damage the
facilities, equipment and disrupt operations

7. Dependence on key customers: The foundry could be heavily dependent on a few key
customers, which could lead to significant financial losses if they decide to stop doing
business with the foundry.

25
To mitigate these risks, the foundry can implement risk management plans, such as conducting
regular risk assessments, developing business continuity plans, and investing in risk management
technologies. Additionally, the foundry can also implement internal controls and policies to ensure
compliance with regulations and minimize the risk of cyber-attacks.

MILESTONE TO BE ACHIEVED (within the first 1 year)

Achieving milestones in the first year of operation is critical for the success of the semiconductor
foundry. Some potential milestones that the foundry may aim to achieve in its first year include:

1. Setting up production facility: The foundry should aim to establish a fully operational
production facility, including all necessary equipment and infrastructure, within the first
year.

2. Obtaining certifications: The foundry should aim to obtain all necessary certifications and
approvals, such as ISO 9001, IATF 16949, and TS 16949 etc, to ensure compliance with
industry standards and regulations.

3. Building a skilled workforce: The foundry should aim to build a skilled workforce, by
hiring and training employees with the necessary technical expertise.

4. Developing a customer base: The foundry should aim to develop a customer base by
building relationships with key customers and suppliers in the industry.

5. Establishing supply chain: The foundry should aim to establish a robust supply chain, by
securing long-term contracts with key suppliers and developing relationships with logistics
companies to ensure timely delivery of products.

6. Implementing Quality Management System: The foundry should aim to implement a

Quality Management System (QMS) to ensure consistent production of high-quality
products and services.

7. Developing a marketing and sales strategy: The foundry should aim to develop a
marketing and sales strategy that targets the right customers and markets, and effectively
promotes the foundry's capabilities and services.

26
 8. Obtaining Financing: The foundry should aim to secure necessary financing, such as loans
or investment, to support its operations and growth.

These will be the priority for the foundry to develop the infrastructure alongside obtaining all the
necessary permissions to avoid legality issues. With these marketing and acquiring finances to
fuel the working capital and expenditure of the machinery and raw materials.

27
 CHAPTER 4 FINANCIAL PLAN

REVENUES

A rough estimate of the revenues for the semiconductor foundry would likely come from the sale
of semiconductor products and services, such as:

1. Wafer fabrication: The foundry would fabricate silicon wafers for use in semiconductor
devices, such as microprocessors, memory chips, and other electronic components.

2. Packaging and testing: The foundry would package and test the semiconductor devices to
ensure they meet the specifications required by customers.

3. Design services: The foundry may also provide design services, such as the design of
integrated circuits, to its customers.

4. Foundry services: The foundry also may offer foundry services, such as the manufacturing
of semiconductor devices on behalf of customers.

EXPENSES

A rough estimate of the expenses for foundry would likely include:

(a) Equipment and facilities: The cost of purchasing and maintaining equipment and facilities,
such as wafer fabrication equipment, cleanroom facilities, and laboratory equipment, can
be significant.

(b) Raw materials: The cost of raw materials, such as silicon wafers, chemicals, and gases, can
also be significant.

(c) Labour: The cost of labour, including salaries and benefits for employees, can also be
significant.

(d) Utilities: The cost of utilities, such as electricity, water, and gas, can also be significant.

(e) Research and Development (R&D): The cost of R&D, including the development of new
technologies and processes, can also be significant.

28
 (f) General and administrative (G&A) expenses, including rent, legal and accounting,
insurance, and other miscellaneous expenses.

Additionally, the foundry should also consider other factors such as market trends, competition
and government regulations within the expenses.

5-YEAR PROJECTION

In general, the semiconductor industry is expected to experience strong growth in the next 5 years,
driven by the increasing demand for semiconductor devices in a variety of applications, such as
smartphones, computers, and the Internet of Things (IoT) devices.

If the foundry is able to secure a significant share of the market, the revenue can be expected to
grow at a steady pace. However, the foundry should also expect increased competition and the
need to invest in new technologies and processes to stay competitive.

Expenses for the foundry would likely include the cost of purchasing and maintaining equipment
and facilities, the cost of raw materials, the cost of labour, the cost of utilities, and the cost of
research and development.

Fig. 4.1: Employment Generated

29
PROJECTED ANNUAL INCOME STATEMENT - SEMICONDUCTOR FOUNDRY

Revenue:

 Wafer fabrication: $50 million

 Packaging and testing: $20 million

 Design services: $5 million

 Foundry services: $10 million Total Revenue: $85 million

Cost of Goods Sold (COGS):

 Wafer fabrication: $30 million

 Packaging and testing: $10 million

 Foundry services: $5 million Total COGS: $45 million

Gross Profit: $40 million

Operating Expenses:

 Research and Development (R&D): $5 million

 Sales and Marketing: $2 million

 General and Administrative (G&A): $10 million

 Depreciation: $3 million Total Operating Expenses: $20 million

Operating Income: $20 million

Interest Income/Expense: $500,000

Income Before Taxes: $19.5 million

Income Tax Expense: $3.9 million

Net Income: $15.6 million3

PROJECTED ANNUAL CASH FLOW STATEMENT - SEMICONDUCTOR FOUNDRY

3
https://www.sec.gov/edgar/search-and-access
30
Cash flow from operating activities:

 Net income: $75 million

 Depreciation: $15 million

 Stock-based compensation: $5 million

 Changes in working capital: $10 million

 Other non-cash items: $2 million Net cash flow from operating activities: $107 million

Cash flow from investing activities:

 Capital expenditures: $25 million

 Purchases of investments: $10 million

 Sales of investments: $5 million Net cash flow from investing activities: $(20) million

Cash flow from financing activities:

 Issuance of debt: $50 million

 Repayment of debt: $30 million

 Issuance of equity: $20 million

 Repurchase of equity: $5 million Net cash flow from financing activities: $45 million

Net change in cash and cash equivalents: $132 million4

PROJECTED BALANCE SHEET - SEMICONDUCTOR FOUNDRY

4
https://www.statista.com/statistics/867210/worldwide-semiconductor-foundries-by-revenue/
31
 Assets:

 Cash and cash equivalents: $100 million

 Accounts receivable: $75 million

 Inventories: $50 million

 Property, plant, and equipment: $500 million (net of $100 million in depreciation)

 Investments: $25 million

 Other assets: $50 million Total assets: $800 million

Liabilities and Stockholders' Equity:

 Accounts payable: $50 million

 Short-term debt: $75 million

 Long-term debt: $250 million

 Other liabilities: $25 million

 Stockholders' equity: $400 million (comprised of $200 million in common stock, $100
million in paid-in capital, and $100 million in retained earnings)

Total liabilities and stockholders' equity: $800 million5

CHAPTER 5: ETHICS & SUSTAINABILITY

 Environmental regulations: Semiconductor foundries in India must comply with all

relevant environmental regulations, such as the Air (Prevention and Control of Pollution)

5
https://www.statista.com/statistics/867210/worldwide-semiconductor-foundries-by-revenue/
32
 Act, the Water (Prevention and Control of Pollution) Act, the Forest (Conservation) Act,
the Wildlife Protection Act, and the Hazardous Waste (Management, Handling and
Transboundary Movement) Rules. They must also obtain necessary environmental
clearance from the Ministry of Environment, Forest and Climate Change (MOEFCC)
before starting operations.

 Occupational Health and Safety: Semiconductor foundries in India must comply with
Occupational Health and Safety laws and regulations, such as the Factories Act 1948, the
Building and Other Construction Workers (Regulation of Employment and Conditions of
Service) Act 1996, the Mines Act 1952 and the Indian Boiler Act 1923. They must also
provide a safe and healthy working environment for employees and ensure they are not
exposed to hazardous materials or chemicals.

 Corporate Social Responsibility (CSR): Companies that have net worth of Rupees 500
crores or more, or turnover of Rupees 1000 crores or more, or net profit of Rupees 5 crores
or more during any financial year are required to spend 2% of their average net profits
made during the three immediately preceding financial years, on CSR activities.

 Foreign Direct Investment (FDI): Semiconductor foundries in India may be subject to

foreign direct investment (FDI) regulations, which are intended to encourage investment
and development in the country.

 Labour laws: Semiconductor foundries in India must comply with labour laws related to
working conditions, wages, and benefits. They must also provide a safe and healthy
working environment for employees and ensure that they are not exposed to hazardous
materials or chemicals.

 Intellectual Property laws: Semiconductor foundries in India must comply with Intellectual
Property laws such as Patents Act 1970, Trade Marks Act 1999 and Design Act 2000 to
protect their IP rights and avoid any infringement.

 Data protection and privacy laws: Semiconductor foundries in India must comply with
data protection and privacy laws such as The Information Technology (Reasonable
Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011

33
 and The Personal Data Protection Bill, 2019, to protect the personal data of employees and
customers.

 Cyber security laws: Semiconductor foundries in India must comply with cyber security
laws such as the Information Technology (IT) Act, 2000 and the Information Technology
(Reasonable Security Practices and Procedures and Sensitive Personal Data or
Information) Rules, 2011, to protect their IT infrastructure and sensitive data

Ethical and sustainability compliance:

Today, reducing the environmental footprint is not only a corporate initiative but also a matter of
compliance—fundamental for long-term business continuity.

Semiconductor fabrication facility will consume large quantities of energy and fresh water and
produce thousands of tons of hazardous waste every year. They can have a large impact on the
environment and are thus subject to stricter environmental reviews.

There will be three levels of environmental analysis for the fab:

1) Categorical Exclusion,

2) Environmental Assessment, and

3) Environmental Impact Statement.

The project falls under a federal agency’s Categorical Exclusion list, meaning it is part of a class
of projects that usually have minimal environmental impact. If a project is not categorically
excluded, then agencies must formulate an Environmental Assessment, which provides an
overview of potential environmental impacts. If the Environmental Assessment determines that a
project will have significant environmental impact, then the agency puts together an
Environmental Impact Statement. The regulatory requirements for an Environmental Impact
Statement, which involves a public review process, are more detailed and rigorous than the
requirements for an Environmental Assessment.6

6
ANNEXURE A
34
 Fig.4.2: Environmental disposal and treatment
References

Edgar-Search and Access. SEC Emblem. (2019, December 16). Retrieved February 1, 2023, from
https://www.sec.gov/edgar/search-and-access

35
Alsop, T. (2022, July 1). Top Semiconductor Foundries Quarterly Revenue 2022. Statista.
Retrieved February 1, 2023, from https://www.statista.com/statistics/867210/worldwide-
semiconductor-foundries-by-revenue/

Gandharv, kumar. (2022, January 12). Top 8 semiconductor companies in India. Analytics India
Magazine. Retrieved February 1, 2023, from https://analyticsindiamag.com/top-8-
semiconductor-companies-in-india/

Gartner forecasts worldwide semiconductor revenue growth to decline 3.6% in 2023. Gartner.
(n.d.). Retrieved February 1, 2023, from https://www.gartner.com/en/newsroom/press-
releases/2022-11-28-gartner-forecasts-worldwide-semiconductor-revenue-growth-to-
decline-3-6-percent-in-2023

System assembly. SCL. (n.d.). Retrieved February 1, 2023, from https://www.scl.gov.in/sad.html

Lithography principles. ASML. (n.d.). Retrieved February 1, 2023, from

https://www.asml.com/en/technology/lithography-principles

Semiconductor Manufacturing Processes. SCREEN Semiconductor Solutions Co., Ltd. (2021,

November 18). Retrieved February 1, 2023, from https://www.screen.co.jp/spe/en/process

Das, S. (2022, November 26). Semiconductor manufacturing process - steps, technology, flow.
Electronics Tutorial | The Best Electronics Tutorial Website. Retrieved February 1, 2023,
from https://www.electronicsandyou.com/blog/semiconductor-manufacturing-process-steps-
and-technology-used.html

India readying for bigger role in semiconductor market. The Sunday Guardian Live. (2023,
January 1). Retrieved February 1, 2023, from https://www.sundayguardianlive.com/special-
supplement/india-readying-bigger-role-semiconductor-market

Semiconductor industry in India, Indian Semiconductor Association: IBEF. India Brand Equity
Foundation. (n.d.). Retrieved February 1, 2023, from https://www.ibef.org/pages/35926

Semiconductor production process. Semiconductor Production Process ｜ Semiconductor

Manufacturing Equipment ｜ ACCRETECH - TOKYO SEIMITSU. (n.d.). Retrieved
February 1, 2023, from https://www.accretech.jp/english/product/semicon/about.html
36
 ANNEXURE A:

PRE-FEASIBILITY REPORT

For
37
Proposed Semiconductor Wafer Fabrication (7AB) Facility with
on installed capacity of 40,000 Wafer Starts/Month (in two
Phases) with 80 MW Gas Based Captive Power Plant

Submitted to:

Ministry of Electronics and Information Technology

Project Proponent:

Jaiprakash Associates Limited

In association
with

Sanyam International Private Limited

December 2022

38
1.0 EXECUTIVE SUMMARY

Department of Electronics & Technology (Deity), Government of India has issued a

letter of Intent in favor of Jaiprakash Associates Limited (JAL).

Phase l’- of the project envisions development of a facility capable of up to 20,000

WSPM output, which is targeted to commence operations from the year 2018. To keep
pace with the technology development, the tooling capability and technology license
will consist of 90nm, 65nm as well as 45nm nodes, all of 300mm wafer diameter.

Phase ‘2’— of the project will consist of adding the tooling capacity to support up to
40,000 WSPM output and down to 28 nm technology node. Phase II of the project is
expected to commence operations from year 2020.

Integration of design capability, as well as Packaging, Assembly and Testing will be

enabled through the project. India is one of the fastest growing electronic consumer
countries, the establishment of the proposed FAB facility will help:

• Provide a sustainable catalyst for electronic manufacturing and starting an

ecosystem for potentially providing millions of jobs.
• Reduce dependence on other Asian countries, provide support for national
security, and provide savings in valuable foreign exchange.

2
 • Generate a wave of job creation and other related aspects of
growth in electronic industry.

• Provide a secure location for the production of semiconductor

products to meet India’s security needs (trusted line).

2.0 INTRODUCTION OF THE PROJECT/BACKGROUND INFORMATION

2.I I identification of Project and Project Proponent

The FAB project is proposed to be implemented by Jaiprakash Associates
Limited through a Special Purpose Vehicle (SPV) (all references herein to we"
refer to the SPV).
2.2 Need for the Project & Importance for the Country

Investment in semiconductor manufacturing provides an economic impact through

employment, equipment purchases and construction facilities. It also creates an impact
from the commercialization of products created by the FAB including opportunities
for export. Finally, there is the market spillover effect due to the productivity gains
made possible by the FAB on other industries. The combined effect of these factors
has been estimated (GDP growth multiplier) to be in the range of 21-23 times the
original expenditure in the FAB, over the next 10 years.

3.0 PROJECT DESCRIPTION

The proposal is to establish a 300mm FAB with technology capability covering a

range of technologies, namely, 90nm CMOS, 65nm CMOS, 45nm and 28nm CMOS.
The plan is to set up the FAB plan from the very beginning capable of handling the
90nm CMOS, 65nm CMOS and 45nm CMOS technologies. Within these three
technology nodes the factory will be capable of producing RF versions for
analog applications, LP versions for low power consumer market applications, and

3
HP versions for networking and ASIC applications. Thus, this factory will be
capable of producing a wide variety of technologies. We will adjust the relative mix
of the technologies in a very dynamic fashion based on the market needs. The
infrastructure and the utilities will be built to handle capacity of 40,000 Wafers
Starts per Month (WSPM). The equipment capacity will be installed in two phases.
In phase I, we will implement equipment capacity of up to 20,000 Wafer Starts per
Month (WSPM) and will increase the capacity to 40,000 WSPM in phase II and
up to 28nm nodes.

The 300mm water size-based technology is proposed covering 90nm, 65nm, 45 nm

and 28nm nodes. The digital technologies based on these nodes have been running in
foundry volume production for several years. The current life cycle of each of these
technologies depends on the application space. For example, derivative technologies
such as Analog & Mixed signal offerings based on 90 nm lithography node are still
in the development phase, ensuring that the proposed FAB is on the leading edge of
technology. 65 nm and 45 nm are in high volume

4
manufacturing for digital technology and projected to be in demand for at least
another decade, including the transition to derivative technologies such as RF
CMOS.

The yields for these technologies are in the mature phase and consistent with
defect densities expected for mature technologies in high volume manufacturing.
Process yields are typically greater than 90%, making these ideal technologies for
stable technology transfer to a new FAB.

The ability to upgrade to advanced nodes is facilitated by the above choice of

technologies in the startup phase, as several key attributes are introduced:

• 90 nm introduces strain technology;

• 65 nm introduces Nickel alloy silicide’s& millisecond anneal technology;
• 45 nm introduces 193 nm immersion technology.
• 28 nm will have High-K/metal pale technology

IBM expects all of the Phase 1 techniques to carry over to more advanced nodes,
thus helping facilitate the India FAB to come up the learning curve on many of the
advanced techniques and act as a catalyst for indigenous development of advanced
semiconductor industry.

Plan for Safely Management

Precautions against leakage of noxious gases, Major safety hazards in the

plant relates to chemical hazards, both in liquid and gaseous form and fire
hazards. The plant shall be provided with the latest technology equipment &
processes to increase the efficiency of the process and thereby to reduce the
possibility of hazards such as use of FAB abatement, scrubbers etc. Fire control
system shall be provided in each and every area of the plant. Hazardous affluent
from the plant shall be treated using various treatment systems including
Fluoride/Heavy Metal Treatment Plant, Ammonia/Peroxide Plant, Acids Slurry
Treatment Plant, Base Slurry Treatment Plant, Waste Water Neutralization
Treatment Plant etc. If shall be ensure that no hazardous affluent is exposed to
environment without treatment, conforming to the norms of State & Central
Pollution Central Board.
3.2 Drainage systems

Plant site has an area of 50 acres. Adequate drainage system comprising of a

network of drains shall be provided to drain of the rain water falling in the area.
Any ingress of water from adjoining areas is not envisaged. Drain water shall be
discharged into the existing drain running along the boundary of the site which
will further carry the drain water to river Yamuna.
Logistics {Warehouse etc.}

The plant is located in a well-connected area having excellent roads, rail

network and air connectivity. All the raw material required for the process can
conveniently be transported to the site. All required storage spaces, warehouses,
storage tanks etc. shall be provided within the plant boundary.

4.0 SITE ANALYSIS

4. I Project location and Scale

Proposed FAB Plant site is located in Northern part of Uttar Pradesh, at about 12
km from Greater Noida, Distt. Gautam Budh Nagar. As per Survey of India
reference H43 X 11, the latitude & longitude of the site are shown below;

PLANT SITE CO-ORDINATES

1: 28°18’48.3" N to 77°31 20.8" E

2: 28°19’00.0" N to 77°31 24.3” E

3: 28°18’59.7" N to 77°3 I ’47.0" E

4: 28°18’42.7" N to 77°3l ’42.0" E

Plan showing the location of site is attached as Annexure-I.

4.2 Approach
State of Uttar Pradesh in general and Northern Uttar Pradesh in particular have
excellent road network with very good connectivity through Roads, Rail & by Air.
Proposed site is located near Greater Noida — Agra 6-lane Expressway, connected
through 120m wide approach road off taking from Expressway at km. 12 (approx.).
Nearest Railway Station is Dankaur located at a distance of 15.6 kms.
 Nearest International Airport is in Delhi which is approx. 46 kms from site.

4.3 Geographic/ Features Geographical

features are as under:

• Temperature 50° - 3°C

• Rainfall
800 mm (Annual
• Wind Speed
47 m/sec as per IS 87a
• Seismicity
Zone-IV as per IS 1893
• Sub-surface
Fairly good sub-soil strata available at 3-4m
• Elevation below ground.
RL 190 m above Mean Sea Level

5.0 PLANNING BRIEF

s. i Assessment of infrastructure Demand {Physics/ & Social)

FAB is designed to enable a competitive, lean structure with an Industry Standard

approach. Additionally, to achieve Best Practice level, which shall reflect
semiconductor industry maturity level of India, intensive support to domestic
design companies, consideration of India related educational issues and
preparing an in-house design competence for a surplus headcount is necessary.

Environmental Pleasures

The Project shall ensure that the proposed process operation causes no/insignificant
adverse impact on the environment and is planned to meet all stipulated
environmental norms prescribed by the State Pollution Control Board, Central
Pollution Control Board and Ministry of Environment & Forests, Govt. of India.

The following measures have been taken into consideration while selecting the
Pollution Control Devices for proposed Semiconductor Fabrication Plant:

• Minimize Air Emissions

• Maximize Wastewater System Efficiency along with Drain
Segregation Systems
• Minimize Water Consumption and Discharge
o. Air Emissions:

Potential air emissions from semiconductor manufacturing include toxic,

reactive, and hazardous gases; organic solvents; and particulates from the
process. The changing of gas cylinders may also result in fugitive emission of
gases. Proposed plant has adopted Wet scrubbers, point-of-use (POU) control
systems and volatile organic compound (VOC) control units to control
emissions of the chemicals used in manufacturing of semiconductors.

It is proposed to scrub acid and alkaline waste gases in separate scrubbers

because different scrubber liquids can then be used, resulting in higher
removal efficiencies. Following types of abatement systems are proposed
for gases treatment:

FAB Abatement:

• Acid Scrubbers - 98% Efficiency

• Base Scrubbers - 98% Efficiency
• Solvent RTOs - 99% Efficiency

b. Point of use (POU) Abatement:

These systems are relatively small and typically dedicated to a single process
tool. The system can remove up to 99% of effluent gases including
perfluorocarbon compounds (PFCs).

c. CUP Boiler:

As in other industrial sectors, NOx emissions in semiconductors

manufacturing include by-products of combustion processes. Hence, Low
NOx Burners has been selected for reduce NOx emissions
 Cleanroom Air Flow Diagram

Figure 5 . 1: 300 MM FAB MAKE-UP AIR- ENVIRONMENTAL AMC

Plant is located in the Industrial development area of Distt. Gautam Budh Nagar
and lies near to planned residential sectors having commercial establishment
as well. As such no residential colony for the personnel working in plant is
required to be constructed and all residential & commercial needs shall be met
with in the adjoining areas.

6.3 Green land assessment

Land is fairly leveled and does not require much development work. 33% of the land
area shall be developed as green belt. Adequate water shall be available after
treatment from sewerage treatment
 plant, which will be consumed in green belt development.

6.3 Wafer Management

A semiconductor is a miniaturized electronic circuit containing a multitude of

transistors. Water is fundamental to the manufacture of semiconductors. Over a series
of steps, semiconductors are built in layers on silicon wafers into integrated circuits
(also called microchips). After each one of several dozen layers of semiconductors
are added to the silicon wafer, it must be rinsed, requiring large quantity of water.

River Yamuna, a major river of India is flowing at a distance of approx.

2.0 km from the site. It is proposed to pump the water from the river, transported
through pipes discharging into a water reservoir of adequate capacity to be
constructed within the plant boundary. Raw water will be treated in Reverse
Osmosis Plant and then will be used in different sections of manufacturing process.
Proposed project has adopted various steps to conserve water at different levels i.e.,
FAB level by reclaiming “Clean" waste water for Non-Contact FAB uses,
conservation through Point-of-use (POU) scrubbers and process tools etc.

Apart from above practices, water is also reused through RO reclaim during De-
lionized (Dl) water production and Cooling Tower Recycling. Detail process flow of
DI water production/RO Reclaim and Cooling Water Recycling are shown in figure
-2 & 3.

Raw

Backwa•hca
RO Filtrate RO ReJect Final Rln•e•

Reject
Figure – 6.1: DI WATER PRODUCTION / RO RECLAIM

By adopting above water conservation measures, there is a potential saving of water

to the extent of l .7 million gallons per day from different sections of the proposed
unit. Figure - 4 below depicts the saving potential from various sections of the
plant.

Water Conservation

300mmP ram

Average 1.7 MGD Saving

Figure – 6.2: WATER CONSERVATION

Sewerage System
Sewerage treatment plant adequate for 500 personnel shall be
constructed for treatment of sewerage. As the plant is situated in a
habitat area no major colony/residential complex for the people
working in the plant is envisaged. However, suitable number of Field
Hostels/Guest House will be provided within the plant boundary. Water after
treatment shall be used for watering the plants/green areas which will
be developed within the plant boundary.
7.1 Waste Water treatment

Effluents from the manufacture of semiconductors may have a low pH from

hydrofluoric, hydrochloric, and sulphuric acids (the major contributors to low
pH) and may contains organic solvents, phosphorous oxychloride (which
decomposes in water to form phosphoric and hydrochloric acid), acetate, metals
and fluorides.

Since the semiconductors manufacturing operations use a diverse range of raw

materials, chemicals and processes, waste water treatment requires the use of unit
operations specific to the manufacturing process in use and the specific
contaminants. Following measures have been proposed in design of Effluent
Treatment Plant in respect of maximize treatment efficiency and to meet the
stipulated standards prescribed by State Pollution Control Board, Central Pollution
Control Board and Ministry of Environment and Forests, Govt. of India.

• CMP Slurry Drain Segregation with Dedicated Pretreatment Facility and

Reduced drain clogs
• Metals Drain to reduce Treatment Cost and Hazardous Sludge
Generation
• Reclaim Drain to Clean Rinses reused for Scrubbers
• Base Drain - Bypass Pretreatment

a. Fluoride/Heavy Metal Treatment Plant:

Effluent having pH-2.5, Copper -9 mg/I, fluoride — 300mg/I will be treated in

separate treatment plant for fluoride and heavy metal removal. The process involves
Fluoride Equalization Tanks, and Reaction Tank, where it is treated with 38% Sodium
Bisulfite for Peroxide Destruction. Thereafter, its pH level is adjusted to alkaline
range by dosing of Lime Slurry in separate reaction tanks and is treated in clarifier by
addition of Flocculants / Polymers to reduce heavy metal contents and separation of
suspended solids through flocculation process. The neutralized and after separating
metal contents, it is sent for secondary treatment at Waste Water Neutralization
Treatment Facility, before reuse/discharge.

Sludge generated from Clarifier will send of Thickener, after thickening, it will send
to Sludge tank and then to Filter Press to make sludge cakes. These cakes will be sent to
Treatment Storage Disposal Facility (TSDF) authorized by Central Pollution Control
Board/Slate Pollution Control
 Board. Detail process flow diagram of treatment plant is shown in Figure - 5.

FLUORIDE/HM TREATMENT PLANT

treatment

Figure – 7.1: FLUORIDE/HEAVY METAL TREATMENT

PLANT

b. Ammonia / Peroxide Plant:

Ammonia and Peroxide bearing waste water generated from semiconductor

manufacturing plant will be first treated for Peroxide treatment in mixing tank
by addition of Sulfuric acid and Enzyme catalyst. The treated effluent is sent to
feed tanks for ammonia recovery by dosing of Sodium Hydroxide and through
Distillation System. Finally, Recovered Ammonia will be sold to offsite end
users and effluent waste generated from distillation plant will be treated at onsite
Waste Treatment Plant. Process flow chart of Ammonia/Peroxide treatment.
 c. Acid Slurry Treatment Plant:

Effluent generated from 300 mm CMP, having pH level 3.5 and (Cu++)
— 6 ppm will be treated at Acid Slurry Treatment Plant. Effluent will be collected in
equalization tank and send to two sets of reaction tanks for adjustment of pH level
by addition of Lime Slurry. It is further treated with metal polish panel and
flocculants /polymers in separate fast mixing tank followed by slow mix fink.
After clarifying in clarifier, it is collected in effluent tank, which has pH level 11
and Cu content <0.3

Sludge collected from clarified will send to Non-Hazardous thickener, and then
finally send to filter press through sludge tank. Finally, it will be sent to authorized
recyclers. Process flow chart of Acid Slurry Treatment Plant shown in Figure - 7.

ACID SLURRY TREATMENT PLANT

Reacsoi
T¥dt 61

R*qd*

Figure – 7.2 : ACID SLURRY TREATMENT PLANT

d. Base Slurry Treatment Plant:

Effluent generated from 300 MM CMP, having pH level 9, will be collected in

Base Slurry reaction tank to adjust pH by addition of Lime Slurry. After adding of
flocculants/Polymers, it is sent to clarifier for settling of solids. Settled solids
combined with acid slurry solids collected in Non-Hazardous thickener, thickened
 solids finally are finally sent to sludge tank and then to filter press for water
decantation.

BASE SLURRY TREATMENT PLANT

Base Skirry
Reaction Tank Tank

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Thk¥ener Non4im eki
INFLUENT S€sd@

talk

Figure – 7.3: BASE SLURRY TREATMENT PLANT

e. Waste Water Neutralization Treatment facility

Waste water from different sections of plant will be sent to Waste Water
Neutralization Treatment Facility for pH adjustment prior to final Biological
Waste Water Treatment system (Water Pollution Control Facility. Effluent is treated
with sulfuric acid or Sodium Hydroxide and finally sent to water pollution control
facility which provides biological and physical treatment of all sanitary waste water.
Sanitary waste water is pretreated in bar screens and grit screw removal systems.

The system is designed to provide polishing removal of organics, suspended solids,

and ammonia. The current treatment steps in process order are; 1) equalization, 2)
nitrifying activated sludge (with alkalinity addition), 3) final clarification (with
polymer addition as necessary), 4) sodium hypochlorite disinfection, 5) SO2 dichlorination, and
6) sludge thickening.

Treated effluent from Waste Water Neutralization Treatment Facility is treated at

steps as mentioned in above para and final effluent is discharged in of surface
water after meeting norms prescribed by State pollution Control Board and Central
Pollution Control Board. Dried non-hazardous sludge will be sent to authorized
recyclers/processor from Central Pollution Control Board.
7.6 Solid Waste Management

Solid and Hazardous wastes from semiconductor unit may include heavy metals,
solder dross (solder pot skimming’s) and waste organic solvents. Solid waste
generated will be sent to authorized recyclers. Hazardous waste shall be stored,
treated and disposed of as per the Hazardous Wastes (Management, Handling and
Transboundary Movements) Rules, 2008, under Environment (Protection) Act,
1986.

7.7 Power requirement

The power requirement of the plant is 80 MW. Power supply shall be ensured from
UPPCL (Uttar Pradesh Power Corporation Limited at 132 KV. As standby
arrangement a Captive Power Plant of 80 MW shall be constructed so as to ensure
uninterrupted supply of power to the plant.
7.8 Wafer Requirement

The water required for the proposed plant operations will be 11,600 m3/day
(FAB Unit and CPP) which will be sourced from River Yamuna, flowing at a
distance of approx. 2.0 km from the site, after obtaining necessary approvals.

8.0 GAS BASED CAPTIVE POWER PLANT OF 80 MW CAPACITY

In order to meet the power requirement, 80 MW Gas Based Captive Power Plant is
proposed to be set up.

Basic Requirements

. Fuel/ Requirement once Source

The present natural gas requirement of the proposed 80 MW CPP is

0.319 MMSCMD which will be met from GAIL natural gas pipeline system
which is passing at a distance of approx. 3 km from the project site. Fuel requirement
for proposed 80 MW CPP has been detailed in below Table-7. 1.

8. 1.2 Wafer Requirement and Source

The estimated make up water required for the proposed gas based CPP is about 70
m3/hr. The water required for the proposed CPP operations will be sourced from
River Yamuna, flowing at a distance of approx. 2.0 km from the site, after obtaining
necessary approvals.

LI.3 Manpower
The proposed power plant will require skilled and semi-skilled personnel during
operation, maintenance and administration of the proposed plant to a total capacity 80
MW. People from neighboring villages, if found suitable, will be employed during
construction and operational phases. The total manpower estimated to be about 200
 people will be deployed during peak construction phase and about 80 personnel will
be employed either directly or indirectly during the operation phase.

Process Description

The gas turbines aggregate capacity will be 80 MW and capable of running open
cycle mode. Based on detailed techno-economic conditions 1 number of gas turbine
configuration has been considered. The technical details of the proposed power plant
are given in the following sections. The process flow diagram is shown in Figure-11.

Gas generator {G7G}

The GT will be advanced class heavy duty, with inline compressor and gas turbine
construction. The gas turbines will be designed to operate normally on natural gas.
The other plant interface requirements will normally be limited to supply of fuel,
instrument air, power supply to auxiliaries, control and instrumentation signals
interface and power evacuation system for generator.
natural gas is a comparatively clean fuel, the emissions released to atmosphere will be
very low. The gas turbine will have a sound proof enclosure as required for arresting
noise in the machine hall as per the internationally acceptable standards.

Point Cyc/e

The condensing plant would comprise a surface type condenser of single shell
construction 2x100% capacity vacuum pumps would be provided to create vacuum in
the condenser during start-up and to remove the non-condensable gases liberated
during normal operation. Air leakage into the condenser not to exceed 50% of design
value taken for sizing of vacuum pumps.

The condensate from the condenser hot well would be pumped by 2x100% capacity
condensate extraction pumps (one working and one standby) to the de-aerator. Feed
water would be pumped from the de-aerator to the steam generator by means of 2x100%
capacity boiler feed pumps (one BFP working and one BFP standby). Electrical driven
boiler feed pumps have been selected because for ease in operation.
Control Fluid System

The control fluid system may be fully separated from the lubricating oil system or
integrated with the lube oil system as per the turbine manufacturer’s standard.
The lube oil system will comprise lube oil pumps, main oil tank, lube oil coolers,
lube oil filters, piping, valves, fittings, etc. The control fluid system will have its own
pumps, motors, coolers, strainers, piping, valves and fittings.

In the lubrication cycle for the turbine-generator, the lube oil comes in contact with
water, air and metal particles which cause deterioration of the lube oil. In order to
prolong the life of the lubricating oil and the parts served by the lube oil, suitable
purification equipment is required to be provided to remove the contamination and
restore the oil to acceptable conditions.

Compressed Air

Two (2) screw compressors (1 working and 1 stand by), each having a capacity of 10
Nm3 /min and a discharge pressure of 8.5 kg / cm2 (g)
 would be provided for the total plant. The screw compressors proposed would meet the
instrument and service air requirements of the plant.

The compressed air system would include accessories such as moisture separators
and air receivers. The discharge lines of all the two compressors would form a
header. Two air driers (one operating and the other stand by) of suitable capacity
would be provided.

8.2Air Conciliating System

It is proposed to air-condition the unit control room, shift charge engineer’s room,
printer room, maintenance engineer’s room, analyzer panel room, DM plant control
room and switchyard control room. Inside design conditions of 24.4 + 1.10C dry
bulb temperature and relative humidity not exceeding 60% would be maintained in
all air- conditioner areas.

Two independent centralized chilled water systems (2xl00% each) are envisaged for
air-conditioning the unit control room/ electronic cubicle rooms. Each centralized
system would consist of two (one working and one standby) water chilling units. The
system also consists of chilled water pumps, condenser cooling water pumps, induced
draft FRP cooling towers, adequate number of air handling units for circulating the
conditioned air through air distribution system to the room. For air conditioning of all
other rooms, packaged air conditioners or room air conditioners of suitable capacity
will be provided.

8.3 Vinification

For the ventilation of the station building, evaporative cooling system (Air washer
type) is envisaged. This system consists of air washers, supply air fans, air washer
circulating water pumps, centrifugal fans and air distribution system for distributing
 the supply air inside the station building. The exhaust of hot air out of the station
building would be achieved by provision of roof extractors and wall mounted
exhaust fans. For ventilation of other buildings, supply air fans, exhaust air fans, roof
extractors or a suitable combination of these would be provided.

8.3.1 Cranes and Hosted

One overhead, cabin / pendent operated electric overhead traveling (EOT) cranes, to
be installed in the turbine hall of the station building for handling various equipment
including generator rotor in turbine building during erection and maintenance. The
generator stator will be handled by jacking and cribbing during erection. Capacity of
EOT crane would be decided after finalization of ST configuration.

For the equipment which weighs above 1000 kg, electrically operated type of hoists
and trolleys will be provided. For the equipment weighing less than 1000 kg,
manually operated hoists and trolleys will be provided.

Fuol Vélye

Fig. 8.1: Gas Turboelectric Power

9 Workshop Equipment

It is proposed to install the work shop equipment in the power plant. Also,
maintenance and measuring tools are proposed to be procured for the proposed
units.

The total plant water requirement for the 80 MW is about 70 m3/hr. The water
requirement will be sourced from River Yamuna, flowing at a distance of approx.
2.0 km from the site, after obtaining necessary approvals.

The raw water system will be provided with chlorine dosing. Provision will be made
for shock dosing and continuous dosing.

Other Plant Systems

Other plant systems like firefighting system, pollution monitoring system and chemical
lab etc. will be designed during detailed engineering.

Sources of Pollution and Mitigation Measures

The various types of pollution from the proposed CPP are categorized under the
following types:

• Air pollution;
• Water pollution;
• Solid waste; and
• Noise pollution.

The stacks attached power plant will be the major source of gaseous emissions in the
power plant. In addition, wastewater will also be generated. The quantities and the
composition of the gaseous and liquid waste that are generated in the plant will be
managed and treated such that their final disposal into the environment meets all the
statutory requirements and the environmental impacts are minimized.

Slack Emission

The major pollutant emitting from the proposed gas-based power plant will be Oxides
of Nitrogen (NOx. The stack height will be provided as per prescribed norms for
quick and wider dispersion of gaseous emissions with proper control measures to
minimize the stack emissions within the stipulated/permissible limits prescribed by
NAAQS.

Water Pollution

The sources of effluents from the proposed power plant are the

following:

a) CW blowdown

b) DM Plant waste

d) Plant Area Drains

 Row Wafer Pre-treatment Plant Waste

The waste from the raw water pre-treatment plant will include the sludge from the
clarifiers. The sludge will mainly consist of suspended solids and turbidity present in
the raw water. This will be collected in a sludge sump to be treated in a sludge
handling plant. The sludge handling plant will consist of a thickener and a
centrifuge to convert the sludge into solids (cake) form. The solid cakes will be
disposed of to be used as a landfill. The separated water from the sludge will be
pumped back to the clarifier.

Water Treatment Plant Waste

This will include DM plant regeneration waste and filter backwash wastewater. The
waste from the DM plant is generated from the regeneration of the ion exchange units and
also from the backwash of filters. The waste from the regeneration of ion exchange units will
mainly consist of trapped cations and anions present in the clarified water. The waste from
the filter backwash will mainly consist of suspended solids and turbidity. The above waste
will be led to the neutralizing pit where it will be neutralized by acid/ alkali addition and
pumped through neutralizing pumps to guard pond.
The oil sewer will collect drain water from main plant area and such other areas from
where there are possibilities of contamination by oil and fed to an oil / water
separator. From the oil / water separator the clear wastewater will be discharged to
the guard pond, while the oily waste sludge will be collected separately and disposal
off in drums.

Effluent Treatment of the Proposal

The effluents mentioned above will be collected in a guard pond. In case, there is a
variation in pH levels of the effluents collected to meet the tolerance limits, provision
will be made to dose acid or alkali in the guard pond to comply with the pH levels
as required to meet the pollution control board norms.

The effluents from guard pond will be used for plant washing, gardening, green
belt, recycle and reuse if required.
So/id Waste Generation

As gas will be used as fuel for the proposed CPP, there will be no generation of
solid waste. However, nominal quantity of sludge from water and wastewater treatment
will be generated, which will be dried and utilized as manure within plant
complex.

Noise Pollution

All the equipment in the power plant would be designed to have a total noise level not
exceeding 85dB (A). Generally, the manufacturers of the gas turbine generators
indicate the following noise level values:

(a) 93 dB (A) at a distance of 1.1 m from the gas turbines

(b) 65 dB (A) at a distance of 120 m from the gas turbines

The gas turbine generator would be housed in closed buildings, which would
considerably reduce the transmission of noise from the gas turbine generators to the
outside environment. The inlet air and exhaust gas streams would be provided with
silencers for noise reduction. Generally, there would not be any operators near the
gas turbine generator on a continuous basis. However, maintenance personnel
working within the gas turbine generator building would be provided with adequate
protection against noise.

Acoustic enclosures will be provided wherever required to control the noise level
below 85 dB (A). Anywhere not possible technically to meet the required noise
levels, personal protection equipment will be provided to the workers. The wide
greenbelt around the plant will attenuate the noise level dissemination outside the
plant boundary.

8.0 REHABILITATION & RESETTLEMENT (R & R PLAN1

No displacement of land owners is envisaged. The land has already been acquired.
 PROJECT SCHEDULE & COST ESTIMATES

9. I
Estimated time for project Implementation

The implementation of Phase I is expected to take 36 months from the zero date and Phase
II can be completed in 24 months thereafter. Assuming the award of project by Government
of India and obtaining environmental clearance and other pre-project approvals to be available
by April 2016, the Phase I of the project
SITE PLAN OF FAB UNIT