BENGALURU, India Delays in formulating a government policy to encourage chip manufacturing prompted Intel Corp. to look elsewhere, including China and Vietnam.
According to a report in the Hindu Business Line on Tuesday (Sept. 4), Intel chairman Craig Barrett said the delay in announcing a chip policy forced Intel to look elsewhere in Asian to locate its manufacturing centers. "The Indian government policy was not timely for us. The government did not have a well-documented plan when we began discussions with them," Barrett was quoted as saying.
"There are no complaints on issues like [Indian] infrastructure," Barrett added. "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," Barrett said, according to the report.
Intel reportedly is still considering India. "However, right now we don't have any plan to set up a plant here. There is enough capacity at this point. With enough capacity in our current manufacturing plants, we do not need any new plant," Barrett said.
Intel, which has a large R&D center in Bengaluru, will expand its engineering and software development activities here, Barrett said.
Meanwhile, potential investors continue to wait for details of the semiconductor policy that were expected months ago. For instance, guidelines for setting up semiconductor, electronics and solar cell manufacturing plants have yet to be announced. Details include guidelines for government concessions such as tax breaks, subsidies and interest-free loans.
SemIndia, Hindusthan Semiconductor Manufacturing, Nest Group, Videocon Ltd. and Xenitis have announced or are establishing chip plants. Signet Solar, Moser Baer and Cypress Semiconductor have expressed interest in setting up solar manufacturing plants here.
According to industry executives, government guidelines for seeking incentives will be announced in a matter of days.