Intel might cancel their plans to setup an assembly plant in India

Intel might cancel their plans to setup an assembly plant in India

Microprocessor industry giant Intel might cancel their plans to setup an assembly and testing plant in India considering the delays by the government in coming out with their semi-conductor policy.

The company has already announced their decision to not setup a chip-manufacturing unit in the country.

If this happens, several other countries are waiting in line to invite Intel to setup plants in their region. Intel is expected to take a decision on its next investment destination by March 2007.

Mr. Ramamurthy Sivakumar, country manager, Intel Technology India spoke on this: “Assembly and testing centers, involve substantial investments, depending on capacity and location. That needs to be backed by adequate infrastructure in the region where such plants would be set up. Infrastructure facilities are required for smooth flow of the supply chain, which has chips coming into assembly centers from the fabrication plant, and then going out to distributors after being cased.”

The company employs around 3,000 people in India. Intel has their fabrication plants in the United States, Israel and Ireland.