Touch tomorrow

New Delhi, June 14: Intel will invest $400 million to set up an assembly and test manufacturing plant for computer chips in India.

The global infotech major has shortlisted Chennai, Bangalore and Noida as possible locations for the plant.

“I could convince them (Intel) that India is the best place for manufacturing and they have agreed,” said Union communications minister Dayanidhi Maran.

The toss-up was between China, Vietnam and India.

Maran had met Intel chief Craig Barrett early this month.

Applied Materials, the world’s largest semiconductor equipment company, IBM, India Electronics Manufacturing Corporation (IEMA) and the India Semiconductor Association will set up a $3-billion semiconductor fabrication unit in India.

The state-of-the-art fabrication unit is likely to be set up in the next 12 months, senior executives of these companies have promised Maran when he visited the US in early June.

IBM will jointly work with these organisations to develop FLASH memory chip. The government is planning to take a stake in the venture, Maran added.

At present, Intel manufactures chips in three countries ' Ireland, Israel and the US.

In India, Intel has a development centre in Bangalore, which designs and develops software for its computer chips.

Maran expects US-based infotech and telecom companies to finalise investment plans worth $1-1.2 billion during the next few months.

“I will be taking a proposal to the cabinet to set up a ‘fabrication city’ on a 2000-acre plot, which will be styled like a special economic zone. With telecom equipment manufacturers setting up base in India, it is imperative that we have semiconductors in India. It is estimated that for the next 25 years, semiconductors will play a very important role in many electronic gadgets,” said Maran.

Cisco chief John Chambers has assured Maran that his company is planning to make India its largest R&D hub outside the US. Chambers would be visiting India to formalise this venture.

The minister had also visited the Google headquarters where he met founder Sergei Brin and CEO Eric Schmidt. Schmidt will visit India in the last quarter of the year and has promised his support for various projects here.

Maran had also met Vincent G.Cerf, chairman of Internet Corporation of Assigned Names and Numbers (ICANN). Paul Twomey, president of ICANN, also called on Maran and apprised him of the latest developments.