Slow India misses Intel bus

CMN Bureau

NEW DELHI: India’s delay in announcing the semiconductor policy made chipmaker Intel decide to set up its manufacturing plants in China and Vietnam.

“Manufacturing is important for any country. We were in serious discussion with the Indian government on setting up of manufacturing unit here, but due to the slow process India has missed the bus,” said Craig R. Barrett, chairman of the $35 billion Intel Corporation.

Intel is not looking at set up a unit in India, Barrett told reporters at Tindivanam in Tamil Nadu.

Sources in the Ministry of Communications and IT said that Intel had approached the Indian government with a proposal of setting up chip manufacturing in 2005.

“It was then when India did not have a semiconductor policy for the country. Intel senior officials had met former Union Minister Dayanidhi Maran to pursue the proposal on manufacturing,” the source said.

India announced the semiconductor policy in February this year.

“Between the time we initiated discussions with India and the announcement of the semiconductor policy, Intel had already firmed up its plans in Vietnam and China,” Barrett said.

Incidentally, Intel earlier had set up a manufacturing unit in Israel, which was originally planned for India.

Intel’s proposed $2.5 billion manufacturing plant in China is expected to begin initial production in the first half of 2010. This unit will make chip wafers using 300-mm technology.

Barrett said that Intel is in talks with Indian companies and the government on WiMax. He added that the chipmaker will strengthen its activities in engineering and software at Bangalore.