On July 28, 2023, AMD, the U.S. chipmaker, declared a $400 million investment plan for India. Over five years, this investment will fuel the establishment of AMD’s largest design center in Bengaluru, India’s tech hub. Its primary goal is to generate more than 1,000 job opportunities in the semiconductor design and engineering sector.
The decision to invest in India demonstrates AMD’s confidence in the country’s growing semiconductor industry. India houses a vast pool of skilled engineers, with the number of engineers continually increasing, making it an attractive destination for chipmakers seeking talent for product design and development.
Furthermore, India’s booming economy is another driving factor for AMD’s investment. With a growth rate exceeding 7% per year, India is poised to become the world’s third-largest economy by 2030. This growth has fueled a rising demand for semiconductors, utilized in various products such as computers, smartphones, and automobiles.
A crucial factor influencing AMD’s decision is India’s favorable government policies. The Indian government has been supportive of the semiconductor industry, offering attractive incentives like tax breaks, subsidies, and grants, encouraging chipmakers to invest in the country.
AMD’s investment marks a significant milestone for India’s semiconductor industry, signaling its maturation and enhanced appeal to global chipmakers.
