Intel gets $32 mil stake and tax exemptions in Hyderabad, India chip plant

Intel partnering on chip plant in India
Silicon Valley/San Jose Business Journal - 9:16 AM PST Friday

Intel Corp. is expected to hold an equity stake of $32 million and become a technology partner for a chip manufacturing project in Hyderabad, southern India.

NanoTech Silicon India Pvt. Ltd. (NTSI) has already begun working on the wafer fab, and the NTSI facility is a project supported by SemIndia Inc., a Palo Alto-based consortium of expatriate Indians.

The Andhra Pradesh government is expected to hold equity of $24 million and provide infrastructure and tax exemptions. Santa Clara-based Intel (NASDAQ:INTC) agreed to participate after meeting with Pradesh and India's chief minister, according to a Business Standard report.

The NTSI plan is to initially build a logic semiconductor fab with a capacity of 30,000 wafers a month. When it begins operations, the fab is expected to make peripheral chip sets for PCs, cell phones, television, DVD players.

http://www.bizjournals.com/sanjose/stories/2006/03/27/daily57.html?f=et79&hbx=e_du

:crazy:

...I don't fully understand the implications of the statement "The Andhra Pradesh government is expected to hold equity of $24 million and provide infrastructure and tax exemptions."

I get the "infrastructure" part. The "tax exemptions" part...I don't know. Tax exemptions for a U.S. company basing operations in India?

:shrug:

Indian factories will now be competing frantically with Chinese sweatshops to see who can make the cheapest, lowest-quality, most poorly-constructed electronic junk in the world.

Is the Wal-Mart family having Andrew Grove over for dinner, tonight?