"Indian labour, being cheapest in the world, combined with technological capability, (creates) scope for semiconductor unit here," Videocon Managing Director Venugopal Dhoot told PTI.

He said currently the project is at a conceptualisation stage and details, including location for the plant, are yet to be worked out.

"It is just being conceived and it will be inappropriate to announce the details now but one thing is for sure that we will set up a semiconductor unit in India, Dhoot said.

On the investment front, he said a full range fab would require a minimum initial investment of about Rs 25 billion. "That is the initial amount of investment we are looking at."

Asked about reports of the company setting up its semiconductor facility in West Bengal, he said the state government was offering attractive package but it has not been finalised yet.

"The state (West Bengal) is progressing very fast. We are having two units there and have never lost a single labour day. We think that it is very good proposal," he said refusing to divulge the exact location, but added the project would require only 100-150 acre of land.

On the possible technology partners for the project, he said Videocon was in touch with a variety of companies.

"We have done homework and have identified several companies who will be joining us in India," Dhoot said, but declined to take names.