AMD - AMD plans $400M investment in India to bolster R&D engineering operations

2023-07-28 06:11:14 ET

Advanced Micro Devices ( NASDAQ: AMD ) plans to invest about $400M in India over the next five years and will include its largest design center in the country based out of Bengaluru, Karnataka.

The new AMD campus will add about 3,000 new engineering roles by the end of 2028 and is expected to open before the end of 2023. The investment is aimed at expanding research, development and engineering operations in India, according to the company.

The U.S. chip giant noted that the investment is supported by policy initiatives from the Indian government focused on the semiconductor industry.

"By further investing and expanding our presence in Bangalore, we are committed to driving innovation in India to support the India Semiconductor Mission," said Mark Papermaster, executive vice president and chief technology officer, AMD.

The new 500K-square-foot campus will increase AMD's office footprint to 10 locations across Bangalore, Delhi, Gurgaon, Hyderabad and Mumbai in India. The company already has over 6,500 employees in the country.

Earlier in July, AMD CEO Lisa Su had hinted during a broader visit to Asia, that the company would consider other companies besides Taiwan Semiconductor Manufacturing ( TSM ) to produce its chips in an effort to improve its supply chain.

Countries around the world have been trying to bolster or make their presence in the chip maufacturing arena following supply chain woes since the pandemic. Earlier this month it was reported that Foxconn Technology ( OTCPK:FXCOF ) was in discussions with TSM and Japan's TMH Group for a joint venture and technology collaboration to start semiconductor fab units in India.

AMD's rival Intel ( INTC ) plans to invest more than €30B (~$33B) in Germany to build two semiconductor facilities as part of a larger €90B manufacturing expansion plan in Europe. Meanwhile, TSM intends to spend about T$90B ($2.87B) in an advanced packaging facility in northern Taiwan, as demand for AI is heating up.

AMD's shares are trading in the green premarket on Friday, partly helped by positive Q2 results of rival Intel ( INTC ) which showed signs of a recovery in the PC market.

AMD +2.20% to $113.54 premarket July 28

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