Dubai, Mar 20, 2006 (WAM) - Dubai Silicon Oasis is poised to attractup to $4 billion (Dh14.68 billion) in direct investment in manufacturingof semi-conductors and electronic components, said a top official.

"We are spending Dh1.2 billion in infrastructure, head office and constructionof 560 villas at the Dubai Silicon Oasis," Jurgen Knorr, chief executiveof Dubai Silicon Oasis Authority (DSOA), said,according to a report in Gulf News.

"We have begun to allocate plots of land to investors to build facilitiesincluding residential apartments, office blocks and industrial facilitiesto manufacture semi-conductors.

"If everything works out as planned, we would attract between $2 to $4billion in total investment at the DSO. We have already signed up with80 companies which will soon go up to 100 in the coming months and bringin between 1,000 to 1,500 qualified professionals, designers and engineersat the DSO," he said.

Last year, it had signed up with LSI Logic, a $2 billion company to investin DSO. Knorr said, DSO is in negotiations with four major semi-conductorplayers to have a presence here, while 10 smaller manufacturers are inthe pipeline.

DSO, a facility being developed by Dubai Government, is spread over 7million square metres of land. Once completed, it will attract globalsemi-conductor manufacturers to relocate to Dubai due to its cost effectivenessand a world-class infrastructure. It is part of Dubai Government's visionto transform the emirate into a knowledge economy as contribution of hydrocarbonto its GDP is reducing every year.

Globally, consumer electronics market is worth about $1.3 trillion annually,of which semi-conductor is worth about $250 billion and silicon is about$8 billion annually. The others are original equipment manufactuing (OEM)or outsourcing market while the rest is logistics and distribution market.

"We are trying to tap the $250 billion semi-conductor and $8 billionsilicon manufacturing market," he said.

As many as 40 high-rise towers are being planned for construction atthe site. These are being sold to investors/developers who will buildthe towers.

"Once completed, the DSO will be home to 150,000 residents, most of whomwill also work here. So, we have a large infrastructure plan in placeto manage the infrastructure, security and other civic facilities," hesaid.

DSO will have a residential cluster, an education, research and developmentcluster as well as manufacturing cluster for semi-conductor development.

It has signed up with AMA University of the Philippines to groom technicalgraduates, while at the same time negotiating with a few US universitiesincluding George Washington University and Stanford University to builda campus at the DSO.

The universities will develop initially 400 graduates, which could tripleonce all the facilities become operational.