Delayed IC policy cost India an Intel plant

The India government's delayed announcement of its IC policyhad prompted Intel Corp. to look for another plant site, particularly in China and Vietnam.

According to a report in the Hindu Business Line, Craig Barrett, Intel chairman, said the delay in announcing a chip policy forced Intel to look elsewhere in Asiato 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."

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 instead expand its engineering and software developmentactivities in the country, he added.

Wait continues
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 cellmanufacturing 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 plantsin the country.

According to industry executives, government guidelines for seeking incentiveswill be announced in a matter of day