The Hindu Business Line : Maran convinces Intel to set up facility

IN a major victory for India in the manufacturing domain, global chip major Intel is likely to set up an advanced test manufacturing facility in the country.

"I have been able to convince Intel Chairman Dr Craig Barrett to choose India over China and Vietnam for the advanced test manufacturing facility unit, and Intel will be making an announcement on the exact location for the new unit in a month's time. The company is looking at three possible locations, Chennai, Bangalore and Noida," the Minister for Communications and IT, Mr Dayanidhi Maran, told Business Line from the US.

Mr Maran, who is currently on a five-day visit to the US, on Tuesday met the Intel chief in San Francisco and handed over the letter of the Prime Minister, Dr Manmohan Singh, regarding setting up of Intel's advanced test manufacturing facility in India.

During discussions with Dr Barrett, Mr Maran had impressed upon him as to the benefits that would accrue to Intel if it set up its facility in India. He had also explained to the Intel chairman the various policy initiatives taken by his Ministry to promote investment in the IT hardware manufacturing sector in India.

"Dr Barrett also expressed interest in India's e-governance programme and will be looking at ways in which Intel can participate in development of computers for rural villages," he said.

Mr Maran said it was too early to comment on the estimated investment for the project, but IT analysts said that such facilities typically entail an investment of about $400 million.

The aggressive positioning by India as a manufacturing destination follows Dr Barrett's visit to New Delhi in November 2004, when he said the company was evaluating the country as a possible location for manufacturing.

In the same breath the Intel chief had pointed out that while many countries had expressed interest in hosting an Intel manufacturing unit, they all needed to recognise the intense competition on parameters such as transportation, customs, utilities, Government rules and regulations, that drove such investment decisions.

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