Feeds

Intel ups capex as India plant talks 'wobble'

$100m question

  • alert
  • submit to reddit

The Power of One Infographic

Intel yesterday raised its forecast 2005 capital expenditure by $100m more than it had been expected to.

The figure is, by an interesting coincidence, exactly what the chip giant is reported to have demanded from the Indian government if it's to build a chip testing plant in the sub-continent.

Intel's India plant has been on the cards for some time, but according to a report in Indian financial newspaper the Business Standard yesterday, the $700m facility's future is in doubt.

Citing government sources, the paper claims Intel is asking India to fork out $100m up front - a payment the nation appears unwilling to make. Intel is also negotiating for tax-beaks and other incentives, all of which are part and parcel of major plant plans.

In March 2005, Dayanidhi Maran, India's minister for information technology and communications, claimed Intel was close to a decision on siting the facility in India. The country has been on Intel's list of possible plant sites for some time, as former CEO Craig Barrett admitted in November 2004. The chip giant already has a number of software development and R&D facilities in the sub-continent.

Maran subsequently said he had convinced Intel to set up the testing plant in India, though Intel denied any decision had yet been made.

Whatever, as it reported its second-quarter financials, Intel last night said it was upping 2005's capex from $5.4bn to $5.9bn. An increase had been on the cards, but earlier indications pointed to a $5.8bn spending target, $100m less than the figure reported. ®

Related stories

Intel overcomes 'weak' line-up during Q2
Intel slaps 'wide load' tag on new Itanium
Date set for Intel's response to AMD antitrust claims
Intel nears India fab decision - report
Intel ups Indian investment

Boost IT visibility and business value

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple ran off to IBM
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.