AMD, a U.S. chipmaker, plans to invest $400 million in India by 2028.

AMD, a U.S. chipmaker, plans to invest $400 million in India by 2028.

AMD to Invest $400 Million in India, Building Largest Design Center in Bengaluru

GANDHINAGAR, India, July 28 (ANBLE) – Advanced Micro Devices (AMD), the US chipmaker, has announced a significant investment of $400 million in India over the next five years. This investment will pave the way for AMD to build its largest design center in Bengaluru, the country’s tech hub. The announcement was made by AMD’s Chief Technology Officer, Mark Papermaster, at an annual semiconductor conference in Gujarat, the home state of Prime Minister Narendra Modi.

India’s Emerging Chip Sector

Despite being a late entrant, the Modi government has been actively seeking investments to establish India as a prominent player in the chip sector. The country is keen to position itself as a hub for chip manufacturing. As part of this vision, AMD plans to open its new design center campus in Bengaluru by the end of this year, creating 3,000 new engineering roles within five years. This move demonstrates AMD’s commitment to leveraging India’s talent pool and supporting its global customers.

Expanding Footprint in India

The new design center will occupy a sprawling 500,000-square-foot campus, marking a significant expansion of AMD’s presence in India. With this addition, AMD will have a total of 10 locations across the country. Already employing over 6,500 professionals, AMD has recognized the immense potential of India’s skilled workforce. By establishing a larger base, AMD aims to tap into the country’s growing expertise in the technology sector.

AMD’s Diverse Range of Chips

AMD’s chips are widely utilized in various devices, spanning from personal computers to data centers. Based in Santa Clara, California, the company is also intensifying its efforts in the artificial intelligence (AI) space. Currently, AMD is working on an AI chip designed to rival industry leader Nvidia Corp. This venture highlights AMD’s aim to continually innovate and expand its product portfolio.

Outsourcing Production to Third-Party Manufacturers

Unlike its top competitor, Intel, AMD outsources the production of its chips to third-party manufacturers such as Taiwan Semiconductor Manufacturing Company (TSMC). Collaborating with established chipmakers like TSMC and Samsung, AMD leverages cutting-edge chip manufacturing technologies. These technologies are highly sought after by nations worldwide to mitigate supply chain disruptions, as evidenced during the recent pandemic.

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India’s Incentive Program and Recent Investments

In 2021, India introduced a $10 billion incentive program specifically focusing on the chip sector. This program aims to attract investments and facilitate the establishment of fabrication plants—a crucial aspect of Prime Minister Modi’s ambitions. Although no company has secured clearance for setting up a fabrication plant yet, India has seen other substantial investments in the chip sector. For instance, Applied Materials, a US chip equipment manufacturer, announced a multi-year $400 million plan to establish an engineering center in India. Additionally, chipmaker Micron invested $825 million in a semiconductor testing and packaging unit in Gujarat.

Photograph of AMD’s CTO Mark Papermaster announcing the investment in India:

This significant investment by AMD in India’s chip sector is poised to accelerate the country’s growth in the tech industry. With the establishment of its largest design center in Bengaluru, AMD emphasizes its commitment to leveraging India’s talent and empowering the country’s engineering capabilities. As India continues to attract investments in the chip sector, the nation’s ambitions of becoming a prominent chipmaking hub draw closer to reality.

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