TIOL-DDT 693 · Thursday, 6 September 2007 · story 4 of 4

Intel outside – When the chips are down - India loses - to china for bureaucratic delays

Legal Corner Icon — the image was hosted by the publisher and was not captured.Intel Corporation has decided to set up its manufacturing plants in China and Vietnam following delays in India announcing its semiconductor policy, according to 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.

“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.

“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.

'The Indian government was a bit slow in coming out with the semi-conductor manufacturing proposal and missed the period of our commitment in which we had to set up our manufacturing unit,' he added.

Intel plans to build a $2.5-billion facility in China to make chip wafers using 300-millimetre technology. Work will start later this year and the plant will begin initial production runs in the first half of 2010. Barrett said in India, Intel would like to strengthen its activities in engineering and software at Bangalore.