Hyderabad, Feb. 9: Sem India Ltd and American semiconductor company AMD will set up India’s first advanced semiconductor fabrication (FAB) facility at Hyderabad at an investment of $3 billion.

“We have chosen Hyderabad to set up the FAB city in strategic alliance with AMD,” Sem India CEO Vinod K. Agrawal said.

He said AMD will fund 50 per cent of the equity and the remaining 50 per cent will be raised through a mix of debt and equity.

Agrawal said the first phase of the project would be implemented in the next three years at an investment of $1 billion.

An investment of $2 billion will be made in the second phase.

He said the government will make an investment of $250 million, besides making suitable changes in policy and regulations, to promote the semi-conductor industry in the country.