June 05, 2012

India Department of Electronics & Information Technology Selects Accenture

To Review Semiconductor Fabrication Proposals

NEW DELHI; June 5, 2012 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.

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Puja Gupta


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