IT services major Accenture on Tuesday said it has been selected by the department of electronics and information technology (DeitY) to review investment proposals from global technology providers and investors interested in building semiconductor fabrication units (fabs) in India.

As part of the engagement, Accenture will work in two phases to help the government assess companies interested in building semiconductor fabs (the building unit of any electronic item) in India, the company said in a statement. No financial details were disclosed.

The first phase includes the development of a template for business proposals as well as a project appraisal template and a letter of intent detailing terms and conditions.

Accenture will then conduct a detailed assessment of the business proposals received by DeitY. The due diligence process could include site visits, interaction with suppliers, market surveys and feasibility studies, the statement said.

Semiconductor fabrication is an essential requirement for the domestic manufacture of electronics, and the government has set a goal of attracting investments of between USD 7-10 billion.

The Indian government has invited companies with technology expertise to invest and set up semiconductor wafer fabrication units in the country.

"With an investment scope of billions of US dollars, this strategic project holds considerable promise for Indian manufacturing," Accenture India managing partner/director (Health and Public Services) Krishna Giri said.

A high-level government committee has recommended supporting investors interested in establishing semiconductor wafer fabs to manufacture chips in India to increase capacity for India's growing domestic demand.

India has emerged as a key center for chip design, as the country's current electronics hardware production capacity represents 1.31 per cent of global capacity.

At current growth levels, domestic production of semiconductors can only meet demand of USD 104 billion of a demand projected to reach USD 400 billion by 2020.

By bringing together investors, manufacturers and the government of India, this initiative will help build the critical collaboration that is needed to bridge the gap in domestic semiconductor production.

"We believe that this initiative will help create an ecosystem for electronics system design and manufacturing in the country," DeitY joint secretary Ajay Kumar said.