AMD and Intel embroiled in government spat

Indian newspaper, the Business Standard, said that the ministry of information technology and the finance ministries are arguing over future semiconductor policy. Last week, said the paper, the Prime Minister's Office told the two departments to find a way through the morass.

Semindia, in which AMD is involved, plans to invest $3 billion to set up a fab in Hyderabad while TI and Intel are also semiconductor investors in India.

The finance ministry is trying to get its head around a 26 per cent investment in infrastructure which will cost billions of rupees. The IT ministry wants tax breaks over a period of years.

Meanwhile the same paper said that India had a visit from the Taiwan Semiconductor Association with a view to developing fabrication plants in the country.

AMD's collaboration with Semindia, according to a column, is only on a technological level. Subir Roy, the columnist, reckons AMD's involvement is technological only with no money being contributde.

The Indian Semiconductor Association wants the government to plunge $1.5 billion over the next three years to help build the first fab in India.

L'INQ
Business Standard