Tessolve plans to set up unit in Hyderabad

By siliconindia   |   Monday, 15 October 2007, 19:30 IST
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Hyderabad: Tessolve Services, provider of post-fab services to semiconductor companies, is planning to expand its assembly, test, mark and packing (ATMP) facility in India. As a part of this plan, the company is looking at acquiring about 35 acres of land near the proposed 1,200-acre fab city in Hyderabad for setting up its third production house, reported The Economic Times. The project will require funding to the tune of over $50 million. The company already has an ATMP facility in Bangalore. The company is in the process of setting up a second facility in Chennai. "Hyderabad will help enhance our customer base in the country as it will be close to a semiconductor ecosystem. Our Bangalore facility services about 18 clients," said P Raja Manickam, Tessolve Services founder and CEO. By August next year, the company's 50-acre Chennai facility will be operational. In the first phase, it will be investing about $50 million. "The funding will be partly through VCs and partly through debt. We plan to raise $30 million with the help of three venture capitalists and the deal will be closed by next month," he said. Presently, the company employs about 235 people and is planning to hire another 400 at the Chennai facility. It will also invest $120 million in the facility by the end-2009 and another $150 million by 2011. "This will partly be funded by internal accruals. We are also looking at tapping the capital market by 2011 through an Initial Public Offering," he said. According to him, global ATMP market, serviced by third party vendors is about $40 billion and it is growing at 23 percent. During the post fabrication stage (after the chip is made), an ATMP vendor will test chips to identify the bad ones.