The Hindu Business Line : Applied Materials bullish, to consolidate Indian operations

APPLIED Materials Inc, the $8.1-billion supplier of equipment and services to semiconductor industry, has embarked on a process to consolidate its Indian operations that would also see it expanding its software development and R&D role into engineering services.

The President and Chief Executive Officer of Applied Materials, Mr Mike Splinter, on Wednesday said: "The Indian operations have grown from modest beginning in 2001 to about 700 people in India and we expect to continue to expand our project development teams here. Apart from consolidating these teams, we are also expanding our role into engineering services."

Addressing a press conference, Mr Splinter said: "The company has grown in India with strategic partners such as Satyam Computer, Wipro, Mindtek and TCS. The company, which has operations in Bangalore ITPL Park, is opening a new facility wherein all the resources would be pooled. Ours is a low capital intensive company and we would invest all that is required to further consolidate our Indian operations."

Commenting on the semiconductor industry, Mr Splinter said: "While there is some talk about plateau in the industry, it is not true. If you go by data available from the semiconductor equipment companies, they continue to invest in new technologies such as 90 nanometres. This will call for constant innovation and investments to meet the requirements of the semiconductor industry."

Mr Splinter, who is on a visit on behalf of the Indus Entrepreneurs (TiE), said the company has a strategic arrangement with Satyam Computer.

"The Indian technology industry is buoyant and the time is just right for setting up semiconductor companies. India has significant advantages right from large international technology community; fab engineering capability, strong currency and IP is protected. There is no reason for this sector not to grow if the right investments take place," he said.

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