Indian government reluctant to support Intel

There seem to be hiccups on the way towards setting up Intel’s proposed $700-million wafer testing facility in India as the government appears reluctant to meet some of the demands raised by the world’s largest chipmaker.

Apart from flexibilities on external commercial borrowings and tax benefits, Intel had asked the government to make an upfront payment of $100 million, officials told Business Standard today.

But the government is not ready to make this kind of a contribution. A team from Intel negotiated the terms of a deal with officials last week but a breakthrough could not be achieved, officials said.

In response to an e-mailed questionnaire, Intel Spokesperson Chuck Mulloy said, “We have teams exploring sites worldwide on an ongoing basis. We do not comment on their activities unless we have reached an agreement and announced an agreement.” He also declined to comment if Intel had asked the Indian government for an upfront payment.