Intel sees major potential in India’s electronic components industry

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Intel pauses stock buyback program in the midst of coronavirus pandemic.

**Updated Nov. 2.**

October 28—Intel is very interested in the potential of India’s rapidly developing semiconductor industry. Intel India recently announced it is working with local government agencies to establish an applied artificial intelligence (AI) center in Hyderabad.

New Delhi also sees the transformative promise of the nation’s electronic components sector and kicked off an initiative to attract foreign chipmakers in June.

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What Intel Likes About India

At present, Intel maintains a substantial presence inside India. Outside of the U.S., the firm employs more engineers there than anywhere else. Its decision to open a new AI center in the area reflects the corporation’s appreciation of its robust homegrown talent.

Nivruti Rai, country head Intel India noted the project is indicative of the region’s rising technological sophistication. “Every single development that happens in the U.S. also happens here,” said Rai in an interview. “We are no longer an internal outsource as we are doing cutting-edge development and work.”

Rai revealed he finds the nation’s potential for chip assembly and testing capabilities intriguing. The executive also lauded the country’s potential to cultivate an electronic components vendor ecosystem.” The executive also commented that “our supply chain organization is looking at growing significantly in India.”

As the country has a large skilled pool and affordable infrastructural costs, its plans make a lot of sense. Recent events like the coronavirus pandemic have highlighted the drawbacks of maintaining a geographically concentrated supply chain. If Intel has greater Indian resources, it could mitigate future disruption to its worldwide production and logistic apparatus.

How India Benefits from New Foreign Chipmaker Investments

At present, electronics manufacturing only represents 3.3 percent of India’s gross domestic product. But the region’s leaders launched a $6.6 billion incentive program to increase the country’s output significantly. New Delhi pledged to subsidize 4 to 6 percent of a qualified corporation’s revenue over five years if they make their components in-country.

iPhone assemblers Foxconn, Wistron, and Pegatron joined the program last month and are increasing their local production capacity.

If Intel opened a production center in the republic, it would further the government’s objectives. Hiring new employees to staff the factory would grow the country’s technology sector and economy. It would also give the corporation a measure of protection for challenges like the U.S.-China trade war.

Ideally, Intel will move to expand its supply chain within India soon. The marketplace so rarely manifests such inarguable win-wins.

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