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India takes on Barrett on chip policy delay statement

Posted: 13 Sep 2007 ?? ?Print Version ?Bookmark and Share

Keywords:Barrett statement? chip policy delay? India government?

Reacting to Intel Corp. Chairman Craig Barrett's statement that policy delays forced the chipmaker to look for a foundry site elsewhere, the India government countered that Intel was never serious about chip manufacturing in India.

Barrett last week cited a delayed government chip policy as the main reason why it looked to China and Vietnam instead of India.

Intel broke ground last week on its 300mm wafer fab in Dalian, Chinaits first in Asia.

A Sept. 11 report in The Financial Express from New Delhi quoted an unnamed official in the Indian Ministry of Communications and Information Technology as saying Intel was never interested in setting up a wafer fab in India. Instead, it only wanted to build an assembly, test and packaging plant, the report said, at a cost of up to $300 million.

The government rejected Intel's demand for an upfront $50 million cash subsidy, though Intel was offered other incentives. "They [Intel] were not really looking at [setting up] a fab. All they wanted was to set up an" assembly, test and packaging plant. "But their demand was turned down," the official said.

"In fact, the kind of [financial] package that Intel was offered at that point was better than the subsidy given in the semiconductor policy announced this year," the official was quoted as saying.

According to the report, an Intel spokesman confirmed that Intel had proposed a packaging plant in India.

- K.C. Krishnadas
EE Times




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