Chennai, Sep 11: SPEL Semiconductor Limited, India first and only IC Assembly and Test facility, would invest 250 million US dollar as part of its expansion plans in the next five years.

The plan was unveiled by Union finance Minister, P.Chidambaram in a special function held at SPEL factory premises at Maraimalai Nagar. He also presented the first products to three of SPEL’s customers. SPEL Semiconductor Chairman, A.C.Muthiah and IOB Chairman T.S Narayanasami were also present at the function.

Talking to reporters after the launch of a new IC packing, the state-of-the art Leadless Molded Package (LMP) at SPEL’s facility company Vice-Chairman, Ar Rm Arun and CEO Sam Varghese said, SPEL functions in a 22 acre land and another seven acre would be acquired near the current facility to set up a SPEL-Special Economic Zone (SEZ).

Arun said the company would colocate related industries in the SEZ, which would be a self contained facility that included residential, health and medical facilities. In all, the SEZ would have a total built up area of more than one million sq.ft.

On expansion plans, Arun said SPEL would launch five new packges besides expanding its three existing packages.

Funds would be raised through debt, convertibles and preferential shares. The company was mulling with the idea of overseas listing after a couple of years, Arun said and added that this would raise the volume of IC production from 5.6 millionby 2011-2012.

Leaders of theSemiconductor industry, Customers of SPEL, other industry leaders Government officials Bankers and special invitees were also present at the Special Launch Function.