The Hindu Business Line : India manufacturing plans not now, says Intel

Tindivanam (TN), Sept. 3 Intel Corporation has decided to set up its manufacturing plants in China and Vietnam following delays in India announcing its semiconductor policy, according to Mr Craig R. Barrett, Chairman of the Board, Intel Corporation.

The company is a $35-billion world’s largest chip maker.

“The Indian Government policy was not timely for us. The Government did not have a well documented plan when we began discussions with them,” he told newspersons.

“There are no complaints on issues like infrastructure against India. Between the time we initiated discussions with India and the announcement of the semiconductor policy, Intel already firmed up its plans in Vietnam and China,” he said.

Enough capacity

“India is still high on our list and will definitely consider in our next round of investment. However, right now we don’t have any plan to set up a plant here. There is enough capacity at this point,” he said after announcing various healthcare projects.

“With enough capacity in our current manufacturing plants, we don’t need any new plant,” he later told Business Line. There is a relatively strong demand for personal computers globally, especially in emerging econ omies, and this will need a lot of chip wafers, he said.

Chip wafers unit

Intel plans to build a $2.5-billion facility in China to make chip wafers using 300-millimeter technology. Work will start later this year and the plant will begin initial production runs in the first half of 2010, according to information available on the Web.

Mr Barrett said in India, Intel would like to strengthen its activities in engineering and software at Bangalore.

According to a study by the India Semiconductor Association, consumption of electronic equipment in the country would rise to $363 billion by 2015 from $28.2 billion in 2005 at a compound annual growth rate of 29.8 per cent pushing the total market for semiconductors to $36.3 billion by 2015.