In a new wrinkle to the offshore-outsourcing flow to India, Advanced Micro Devices will build an engineering design center in Bangalore dedicated to the design of future generations of AMD microprocessors.
AMD plans to gradually ramp up at the facility, scheduled to open this summer, by hiring 40 employees to staff the site this year, with 120 experienced chip-design and -development engineers planned to be on site by the end of 2005. "This is only the starting figure," said AMD India president Ajay Marathe at a press conference. "Investment potential is virtually limitless."
AMD said that, while it is receiving Indian government incentives in the form of tax and customs duty exemptions, it plans also to invest about $5 million in the facility over the next three years. On Wednesday, the firm said it is continuing to hire at all its design centers in the U.S. and in Dresden, Germany. AMD said no job losses are expected. Its Opteron 64-bit machine-one-year old this week--has been selling well worldwide.
Randy Allen, AMD's Computation Products Group vice president, said the Bangalore region has a supply of outstanding engineering talent, as well as cost advantages. In a statement, Allen said, "We are working to bring the center online and up-to-speed quickly, and expect that our India engineering team will work in conjunction with our U.S. teams to produce future generations of AMD microprocessors."
The new facility will occupy 38,000 square feet in a standalone building in the central business district of Bangalore. The company said the engineering center will also support the company's "emerging markets business development efforts through system-level design work carried out in conjunction with AMD's global engineering teams."