Indians can have their own chips.

Posted on February 23, 2007. Filed under: India, Technology |

I love chips, this should not be mistaken with potato chips. I love semi conductor chips. This post is under the influence of echo, which is the after effect of a big announcement by Indian government. India is now with a chip policy, though it is an year late but it was certainly worth the wait. There is large amount of cheers in Indian Inc. and mind you they are right to do so.
To summarize,
Govt. will pick 20% of capital expenditure of manufacturing facility.
Minimum investment is $550 Millions for one who is aspiring.
There will be extra concessions for company opting land outside SEZ.

Land is certainly fertile but is devoid of farmers. When would the farmers would be coming? India is already on with Semindia, which will work like Maruti, working in technical collaboration with AMD, as AMD will but stipulated amount of chips coming out of Semindia, and would be providing the tech know how. But still this wonderful land can hold more than one company and waiting for market leader, Intel.
Another question could be, why now, and isn’t it late. China+Taiwan+Korea are already producing cheap chips and are flooding market, and if India spends large amount of money now then its kind of waste. But I feel that such doubts are misplaced, but yes India have to carve out their own niche when it comes to type, quality and extensive R&D.
I will certainly looking forward and would be keeping my eyes on it. Because this field will provide nice job opportunities. 😉


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