The Hindu : Business : AMD chief to line up major initiatives

Online edition of India's National Newspaper
Wednesday, Nov 30, 2005

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Business

AMD chief to line up major initiatives

P. Manoj

India identified as a high growth market

BANGALORE: Chipmaker Advanced Micro Devices Inc. (AMD) is expected to announce a major initiative in the semiconductor space in India during the first visit of its Chairman, President and CEO, Hector de J. Ruiz, to the country from November 30 to December 2.

The initiative could either be a chip-making plant, commonly referred to as fabrication plant or fab or a test, assembly and packaging facility worth millions of dollar. "There are several announcements Mr. Ruiz is going to make during his visit. But, don't ask me what all... ," Ajay Marathe, President, AMD India, told The Hindu on Tuesday.

India currently does not have a chip-making plant although a Korean entrepreneur, June Min, has announced plans to set up a fab in Hyderabad with an investment of $650 million that will make 30,000 silicon wafers a month.

The Union Government is wooing hardware manufacturers to India to build fabs and compete with heavy weights such as China and Taiwan to grab a slice of the global $220 billion chip-making pie. The domestic market alone for chips is estimated at $800 million by the end of the year and local chipmakers will be better placed to serve the customers quickly. Chips are increasingly loaded with software, where India's $17 billion software industry is a global power, in gadgets ranging from credit cards, mobile phones and other electronic devices.

India has been identified by AMD's executive team as a high-growth market that will play a key role in the future plans of the chipmaker. Mr. Marathe had earlier indicated AMD's desire to build a fab in India and make available low-cost devices.

Testing and assembly plants are facilities to which manufactured processors, chip-sets and other chips are sent, tested, placed into packages and shipped to PC makers or distributors. Testing and assembly facilities cost less than fabs, which can cost $3-4 billion to build. During his visit, Mr. Ruiz, along with his senior executives, is scheduled to meet senior government leaders, prominent corporate visionaries, key partners and customers in New Delhi, Mumbai and Bangalore.

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