In a push to India's dream to emerge as global manufacturing hub for meeting domestic demand for electronics and other technology devices, 11 companies, both foreign and local, have evinced interest to set up semiconductor wafer fabrication plant.

"Department of Information Technology (DIT ) has received proposals from 11 companies to set up wafer fabrication plant in India. There are couple of domestic firms and other are foreign firms," P S Narotra, senior director and Head, International Cooperation and Electronics Hardware Industry, DIT, told reporters on sidelines of 'Electronica India 2011'.

Narotra added that some of the firms are serious pursuing and are seeking additional information about the policy.

Electronic chips are key components of all electronic devices like mobile phone, computer, television and others.

These chips govern functions of device.

India had been eagerly looking for interest of semiconductor companies to set up an electronic chip making plant here. The Ministry for Communications and IT also announced a special incentive plan, Semiconductor Policy 2007, to attract investment in the field.

The policy did receive investment for solar plants, but failed to get interest from chip-making firm which was largely attributed to the global economic crisis.

Global chip making firms like Intel, ST Microelectronics, Infineon Technology and other didn't see favourable condition to set-up their plants in India.

It is estimated that setting up electronic chip making plant involves investment of over USD 2 billion and a plant can suffice need of billions of devices.

In April, Indian government agreed to provide support of up to Rs 25,000 crore for setting up of two wafer fabrication plant in the country. The government has also formed an empowered committee to negotiate with players and facilitate their investment by providing them favourable conditions.

Estimates show that India's demand for electronics products (including telecom) will be USD 400 billion by 2020.

If the initiatives are not taken to boost local manufacturing of electronics , the production of electronics hardware is likely to grow to USD 104 billion by 2020 at the existing rate of growth, creating a demand and supply gap of USD 296 billion, which would have to be met through imports.

The three-day fair, Electronica India 2011, that started here today is hosting over 900 exhibitors with country pavilions from China, Japan, Spain, Italy, Germany, Hong Kong, Korea, Singapore and Taiwan.