AMD, Samsung Bullish on India

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Forerunner
AMD aims to double its growth in India

Advanced Micro Devices, the world's second-largest chip maker, said on Monday it expects India to be its fastest-growing Asian market, and aims to double its growth there during 2006.

Importance of India :

Although China represented a bigger market for the company it sees its highest growth coming from India for both its value and premium chips.

Company officials said sales from India currently contributed about five percent to global revenues.

AMD has chip assembly and testing operations in Malaysia, Singapore and China, but its two manufacturing plants are located in Dresden, Germany.

In November, the firm said it may pick up a stake in a proposed US$3-billion semiconductor plant to be built by public-private consortium SemIndia.

Rivals :

AMD ranks a distant second behind Intel in the market for microprocessor chips, with roughly 10 percent of the global market in revenue terms and 15 percent in unit sales. Intel has about 80 percent of the market.

At this point AMD has no plans for direct investment in manufacturing in India, their main objective is to grow at twice the industry rate in India.

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Samsung's Indian mobile handset plant begin's production


South Korea's Samsung Electronics Co Ltd, the world's third-largest mobile phone maker, said on Monday its Indian handset plant had begun production, helping it cut costs in a fast-growing sector.

India is the world's fastest growing wireless market, with the country adding a record 4.7 million new mobile customers in January, taking the total number of users to 81.1 million.

The first product was a flip-top phone.

Capacity :

Samsung's US$15 million-plant on the outskirts of New Delhi will produce one million units per year, and capacity will be ramped up to 20 million units annually by 2010.

The plant is Samsung's third overseas unit with one each in China and Brazil. It will act as a sourcing hub for southwest Asia.

The world's cheapest call rates — 2 US cents a minute — are luring millions of Indians in a sector where penetration rates remain low. Only eight in a 100 Indians use mobile phone services compared with more than 29 percent in China.

Rivals :

Samsung's Korean rival LG Electronics Inc already has a plant in India. Top handset maker Nokia is also in the process of setting up a handset manufacturing unit in the country to soak up soaring demand.

Other players such as Motorola are also boosting their presence in India where pricing generally holds the key to market share.
 
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