Intel Corp has put its plans on hold to establish a silicon wafer-testing facility in India following the government’s inability to grant the company tax concessions for a 15-year period, according to a local report.
The chipmaker told the Indian government that investment in a new facility would not be viable without the tax concessions, but that Intel would explore future opportunities, according to a government official cited by Business Standard.
The concessions that Intel was apparently seeking went beyond those available in the country’s special economic zones and officials told local media that by granting them to Intel it would set a precedent for future foreign investment in the country.
Intel, which does not comment on unannounced facilities, was reportedly eyeing economic zones near Chennai and Greater Noida in India as potential sites for its 125 to 150-acre facility.
The investment was initially going to invest $250m in the first phase of its India investment, followed by three phases of $150m, according to the report.
Already India is home to Intel’s largest non-manufacturing facility outside the US with the Intel India Development Center in Bangalore.