Bangalore too expensive for Taiwan chip makers

By agencies   |   Monday, 04 September 2006, 19:30 IST
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BANGALORE: For Taiwan’s famed chipmakers, champions of the high volume-low cost game, Bangalore appears a trifle too expensive for setting up manufacturing units. Instead, Taiwanese companies are scouting around for locations in Chennai and Hyderabad, Business Standard reports. “Bangalore is an information technology hub, but it is as costly as Taiwan. In comparison, Chennai and Hyderabad are cheaper and good for setting up chip manufacturing units,” Business Standard quoted Taiwan Semiconductor Industry Association President TY Wu as saying. TY Wu felt that though Taiwan had the required technology, it lacked chip design skills, something available in abundance in India. “The two cities provide better infrastructure for packaging, system assembly, and system integration. Various chip manufacturing units can be set up at the SemIndia facility in Hyderabad, and the semi-conductor SEZ coming up in Chennai,” the newspaper quoted him as saying.