Bangalore: A group of firms working in the semiconductor space today (Nov 2, 2004) launched the India Semiconductor Association (ISA) with an effort to bolster growth, for what is projected as "the next big wave" for the Indian technology sector.

The founding of ISA could not have come sooner with the Union IT Minister Dayanidhi Maran indicating last week that India has begun studies for building a manufacturing facility (Fabs) for wireless chips in the country.

"We believe that the time is ripe for the industry to make the leap into the upper echelons of semiconductor excellence," ISA chief mentor Sridhar Mitta said.

India presently has two fabs - Semiconductor Complex Ltd in Chandigarh and SITAR in Bangalore - developing chips of for strategic sectors, but not for mass-produced chips that drive consumer electronic goods and computers.

However, India's software expertise has been leveraged by about 100 firms in the semiconductor space, including top chip makers like Intel and Texas Instruments developing the codes for next generation chips that drive on software.

Maran had said setting a chip fab would cost upwards of $3 billion and India was looking at next generation chips with wireless applications including for Radio Frequency Identification Device (RFID).

"In the last two decades the Indian industry has grown to become essential for any global semiconductor related engineering activity. Now it has to raise its performance at its home with a conducive eco system," ISA member Janakiraman said.