Intel had planned as well as announced last year about its plan to setup a multi-billion chip plant in India which was declared as canceled by Chairman Craig Barrett blaming the slow Indian government response on supplying semiconductor manufacturing proposal.
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Intel on Wednesday said India lost out on a multibillion-dollar chip plant because the government dragged its heels on introducing an investment policy on semiconductors.
“The Indian government was a bit slow in coming out with its semiconductor manufacturing proposal and missed the window of our period of time that we had to commit our next tranches of manufacturing capacity. That is a fact. That is the story,” Chairman Craig Barrett said in New Delhi.
In November, Intel (nasdaq: INTC – news – people ) had said it was waiting for the government to introduce its semiconductor policy before it committed to manufacturing in India. In March, the Santa Clara, Calif.-based company said it would build a $2.5 billion, 300mm wafer fabrication plant in China instead.
But he said India remained a potential candidate for future investments.
Intel has had operations in India since 1988 and its largest non-manufacturing unit outside the U.S. is in Bangalore. In 2005, it announced plans to invest $1 billion in the country.
India announced its semiconductor policy in March, after nearly three years of delays, and government officials said it expected to attract $6 billion to $9 billion in investments over three years.