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Advanced Micro Devices has signed memorandum of understanding (MOU) with Indian tech firm SemIndia under which AMD may provide technologies necessarily to develop and manufacture microprocessors on SemIndia’s foundry which is yet to be built.

The agreement signed today allows SemIndia to license AMD’s proven process technology as well as necessary technology licenses for SemIndia’s planned wafer fabrication and assembly-test-mark-pack (ATMP) operations. AMD and SemIndia will also jointly develop and market semiconductor solutions for India, according to a statement.

“AMD is committed to succeeding in global high-growth markets, and we are proud that AMD’s industry-leading microprocessors and manufacturing capabilities will enable SemIndia to develop its own innovative solutions and expand the global market for information technology,” said Hector Ruiz, the head of AMD.

SemIndia is seeking to build a $3 billion semiconductor manufacturing in India within the next two to three years and utilize 90nm and 65nm process technologies from AMD to produce chips needed in the country. The company has plans to begin construction of the fab sometime in 2006, but currently it is unknown where the foundry is to be located. AMD may also pick up stake in the upcoming fab.

The MOU was signed by Dr. Hector Ruiz, chairman of the board, president and chief executive officer of AMD, and Dr. Vinod K. Agarwal, chairman of the board, SemIndia, in the presence of Thiru. Dayanidhi Maran, the honourable minister for communication and information technology.

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