AMD to set up chip factory

Telecom minister Ravi Shankar Prasad on Tuesday said that chip maker AMD is planning to enter Indian electronics sector in a big way even as Indian infra firm JP Associates has pulled out of a similar chip project.

“AMD wants to come to India in a big way,” the minister said.

AMD CEO and president Lisa Su met Prasad and conveyed that the company is committed to transform India into electronics manufacturing hub.

According to an official, Mr Su discussed matters related to semi-conductor policy and its fab proposal.

The government is work- ing to make India a big hub of electronics manufacturing and is giving providing various incentives to companies to set their shop here.

Demand for electronic products in India is expected to reach $400 billion by 2020 and local chip factory is crucial for manufacturing electronic products in the country.

AMD has entered into an MoU with HSMC to explore various options for providing technology licence to manufacture micro processors in the semi conductor fabs.

Meanwhile, debt-laden JP Associates has with- drawn its proposal to set up a chip plant in partnership with IBM and Israel’s Tower Semiconductor.

“JP Associates has withdrawn its proposal of semiconductor plant. They have said that it is not commercially viable to set up this plant at present,” DeitY (department of electronics and IT) secretary Aruna Sharma told reporters on sidelines of a Qualcomm event.

The plant was one of the two approved by the Cabinet in February 2014.

Mr Sharma said that other firm Hindustan Semiconductors is still working on the project.

AMD HAS entered into an MoU with HSMC to explore various options for providing technology licence to manufacture micro processors in the semi conductor fabs. Its CEO and president Lisa Su has also met telecom minister.