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AMD Inks India Semi Manufacturing Partnership

Online staff -- EDN, November 30, 2005

To meet the growing demand for x86-based computers in India, Advanced Micro Devices (AMD) Inc. has inked a manufacturing, licensing and business development agreement with SemIndia in New Delhi, India today.

SemIndia is being established as a public-private partnership initiative with the Government of India aimed at bringing semiconductor manufacturing capabilities to the country.

A memorandum of understanding (MOU) was signed today by AMD chairman, president and CEO Hector Ruiz and Dr. Vinod K. Agarwal, chairman, president and CEO of SemIndia.

India is seen as representing a major market opportunity for desktop and laptop PCs and internet appliances with industry observers expecting the market to experience strong growth in the near future given the impetus provided by the government of India to increase PC penetration and internet connectivity.

Today’s agreement allows SemIndia to license AMD’s process technology for its planned wafer fabrication and assembly-test-mark-pack (ATMP) operations. AMD and SemIndia also said they would jointly develop and market semiconductor solutions for India.

“We will remember this day as a historic milestone in India’s economic and manufacturing progress,” Ruiz said in a statement.

“AMD is committed to succeeding in global high-growth markets, and we are proud that AMD’s industry-leading microprocessors and manufacturing capabilities will enable SemIndia to develop its own innovative solutions and expand the global market for information technology,” he continued.

India’s communications and information technology minister Thiru Dayanidhi Maran said of the agreement, “AMD is acknowledged as a technology leader in the industry, and is the ideal partner for India’s foray into semiconductor manufacturing. We are excited to see the commitment demonstrated by AMD and SemIndia, and the Government of India is backing this initiative solidly.”

Further, SemIndia’s Agarwal said, “With support from the Government of India and AMD’s proven process technology, SemIndia is creating a strong foundation to bring world-class wafer fabrication and ATMP capabilities to India. Our vision is to make India a global hub for semiconductor manufacturing, and this agreement should bring world-class wafer fabrication to India for the first time.”

This agreement stems from a visit earlier this year by Thiru Dayanidhi Maran to the U.S., who met with AMD to discuss opportunities to jointly grow the India market. The communications minister is said to have championed the cause for increasing PC penetration, internet connectivity, and high-tech manufacturing in India.

Speaking at the signing of the MOU, Ajay Marathe, president of AMD India concluded, “This is undoubtedly the next big wave in India’s progress, and AMD is committed to bringing our process technology expertise to the SemIndia initiative.”

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