SPEL Semiconductor Ltd, the country's only IC assembly and testing company, has further expanded its range and capacity in LMP (leadless moulded package) in collaboration with US-based California Micro Devices.

In step with the company's on-going expansion plan at an investment of $286 million for a five-year period, the two new assembly lines ? thin leadless moulded package (TLMP) and ultra thin leadless moulded package (UTLMP) ? would be installed by CMD, the five-year old customer of SPEL. An agreement was reached for technical collaboration between SPEL and CMD according to which the all equipment would be in place by April 2007. While the TLMP line would be commissioned by June, the UTLMP line would go on stream by August 2007.

This phase of expansion that involved basically the sub-contract work for CMD was at a cost of $7.75 million that included $2.2 million from CMD, $4 million as loan from Indian Overseas Bank and another $1.5 from internal accruals of the company would further diversify SPEL's range of products in LMP packages from 0.75 mm to 0.5 mm thin IC units. After the two 0.5 mm package lines were commissioned, the total capacity would move up by 5 million units per month from the present 252 million units per annum for the entire LMP packages. These IC (integrated chips) components find varied applications in mobile handsets, digital electronics and personal computers. According to the agreement, SPEL would assemble, test and package the products to deliver the entire consignment back to CMD.

SPEL's application for a Special Economic Zone (SEZ) to move its operations into an exclusive area was pending with the government, said Ar Rm Arun, vice-chairman, SPEL Semiconductor Ltd. Addressing the media after the sign-in function with CMD on Wednesday, he said the company's IC products were being used by leading MNCs like IBM, Dell, Sony and Samsung for diverse applications from handsets to consumer electronics. From the present $4 billion, the semiconductor industry was poised to touch $40 billion in 2015, he estimated. 'Having grown in IC design testing, it is now time for setting up manufacturing centres for design hardware,' he said.

The company's tested relationship with California Micro Devices had changed into a partnership which would usher in mutual growth for both entities, he assured.

In his speech, Robert V Dickinson, president, CMD, said his company had a good customer - vendor relationship for the last five years, and now concrete steps were made to extend this partnership in a big way. CMD was confident of the technical ability of SPEL in the new assembly lines as the latter had been a reliable supplier of high quality and cost-effective IC products till now.

The Centre was keen to usher in an industry friendly environment for investments in fabrication plants with an exclusive Semiconductor Policy shortly, said C Chandramouli, State IT secretary.

State government was working on developing the required skillsets for the growth of critical sectors like automotive, semiconductor design and hardware manufacturing, informed Shaktikantha Das, Indust-ries secretary. SPIC group chairman A C Muthiah was also present at the sign-in function between SPEL and California Micro Devices.