The world’s second largest cell phone-maker Motorola has announced that it is moving its semiconductor design units to India and China.

The move is in part, aimed at cutting costs. It will involve closing down such set-ups in Singapore, Hong Kong, and Taiwan. India’ English speaking competency is also a factor that has assumed significance in this context, since a lot of the literature, software and technical, is in English. Motorola’s staff strength in microchip design in Asia stands at about 1000. Out of this, some 200 are located in their Gurgaon and Noida facilities.

The cost factor is important in the light of the company’s poor showing over the last couple of years due to a decreased demand for their mobile phones and wireless equipment. Although Motorola posted a satisfactory profit in January, their line of new products with popular features, like digital cameras and color screens.

An average worker in Singapore earns $7.14 an hour, and his counterpart in Taiwan earns $6.13 an hour. In contrast, a worker in China gets a mere 53 cents.