Despite India's efforts to attract global leaders to manufacture advanced chips, Intel revealed that it has not made a decision to invest in chip manufacturing as India has not yet established a mature ecosystem. Responding to a question about Intel's investment plans in India, Intel Chief Commercial Officer Christoph Schell, speaking at the Intel Innovation Summit in San Jose, California, said one of the key factors in investing in new locations is the availability of semiconductor manufacturing and packaging facilities, as well as suppliers and customers, nearby.

Christoph Schell added that Intel's $32.8 billion manufacturing plant in Magdeburg, Germany, is about 465 kilometers away from its planned $4.6 billion assembly and test plant in Wroclaw, Poland.

According to the Intel IDM2.0 strategy, Intel is investing in manufacturing plants globally, including two new plants in Ohio, USA, and the EU plan to invest 80 billion euros in the entire semiconductor value chain over the next ten years. Intel announced in June this year that it would invest $25 billion in Israel. Currently, India is not on Intel's radar.

Intel's announcement comes as India seeks to attract global semiconductor manufacturers to set up factories through the 760 billion rupee ($93 billion) India Semiconductor Plan.

Thanks to the investment and construction of R&D centers by companies such as Intel, AMD, Qualcomm, and MediaTek, India has formed a chip design ecosystem mainly concentrated in Bangalore. However, after the state-run semiconductor manufacturing plant (Semiconductor Complex Limited) ceased operations due to a fire in 1989, India's commercial-scale semiconductor manufacturing capacity became almost zero.

Nonetheless, a semiconductor ecosystem may emerge in the western Indian state of Gujarat after Micron announced a $2.7 billion investment in setting up an ATMP facility. Jefferey Chun, managing director of Simmtech Southeast Asia, a South Korean PCB and IC substrate manufacturer, said they are evaluating and preparing for another investment with Micron. The key consideration is whether the company can obtain the same standard of support, as these investments may not be considered independent projects.

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