AMD to help India build its first microprocessor plant

AMD to help India build its first microprocessor plant

Microprocessor giants AMD (Advanced Micro Devices) has announced plans to support India in building its first microprocessor plant. They have signed on a “milestone” agreement with SemIndia to bring semiconductor-manufacturing capabilities to India. The agreement was signed on by AMD CEO Hector Ruiz and SemIndia CEO Vinod K. Agarwal. And it would cover manufacturing, technology licensing, and business development of these processors.

India is a growing market for PCs and the company aims to develop processors locally to provide low cost computing to domestic customers. SemIndia is a consortium of overseas Indians and they are working with the Indian Government to cultivate a chip manufacturing industry. They aim to spend as much as USD 3 Billion to build a chip fabrication factory, or fab here in India.

The signed agreement would enable SemIndia to license AMD’s process technology for the fab as well as chip-testing and packaging operations. Both the companies would also jointly develop and market semiconductor technology for India. AMD CEO Hector Ruiz spoke about this agreement: “We will remember this day as a historic milestone in India’s economic and manufacturing progress.”

The market leaders Intel also had similar plans to establish a locally based chip manufacturing facility but they end up choosing Israel instead.

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