Thursday, April 03, 2008

Reliance - going fab!!!

Reliance, the petrochemical behemoth shall invest $7.55 Bn in building semiconductor fabrication (Fab) units (and from the news report I get an idea of polysilicon too).

Fab's worldwide are losing money and in India we dont exactly have the expertise (Taiwan has been doing it for almost an eternity now) . National Semi has shown what can go wrong of TSMC has always lead the pack with what can go right.

The rationale:
1) Its capital intensive, time consuming project: Reliance domain
2) Worldwide polysilicon shortage: Build spectacular capacities while there are none, again typical Reliance
3) If solar energy really becomes cheap, it could provide thousands a source of cheap electricity in India. It falls right in Dhirubhai territory, make the 'aam aadmi' dream

What could go wrong?
1) Global overcapacity
2) Silicon shortage
3) Shift in technology away from Silicon (the real challenge for both solar/semi's)
4) Environment!!

I am still skeptical about the news per se, but if its right somebody please get me a job in Reliance. I want to build this!

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