Want to build a production plant? Choose India. See if the government cares

Sep 6, 2007 09:53 GMT  ·  By

Some of the most important computer hardware manufacturers in the world like Intel, AMD and others have design, testing and production facilities both in the United States and Europe as well as in Asia where the work force is much cheaper allowing companies to build a higher profit. While the vast majority of the Asian states are simply rolling the red carpet for every new company that thinks about a new computer manufacturing plant, there is one notable exception: India. Because the Indian government was slow in announcing a policy for the chip manufacturing processes, Intel rethought its decision of building a computer hardware manufacturing plant there.

"We were in serious discussion for chip manufacturing in India but the government was a bit slow on semiconductor manufacturing proposals," said Intel chairman Craig Barrett who was cited by the site livemint. So, Intel will instead set up manufacturing plants in Vietnam and China as both countries were more than happy to accommodate Intel's requests. The company's chairman said the planning for a new production plant takes years to perfect and the two countries selected responded faster than India.

While for the time being the world's largest central processing units and related hardware parts manufacturing company has no plans to return to India, Craig Barrett said that Intel may try again sometime in the future to build a production plant on Indian soil if the company will need extra manufacturing capabilities. "Past is past. India is high on our list of future manufacturing destinations if we require additional capacity," he said. Even after the failed project Intel is now in discussions with the Indian government in order to implement its Wi-Max Internet wireless broadband services as a cheap and easy alternative to other connecting offers.

Apart from these projects Intel also announced the partnerships with a number of Indian companies including NIIT Ltd, Fortis Healthcare, TCS among others for its World Ahead Program. This program is sponsored by Intel as a means to improve education, health care and business opportunities as well as government services in the developing countries by accelerating the adoption of personal computers, Internet and by making computing solutions more affordable.