Trend: Tech companies are investing in qualified workers and the infrastructure outside the US.
Chip industry rivals Intel and Advanced Micro Devices are facing off on a major new battleground: India.
Intel (INTC) said Monday it plans to spend more than $1 billion in that country over the next five years. The effort will add to the $700 million that Intel has already pumped into India.
AMD, (AMD) Intel's biggest competitor in personal computer chips, also has deepened its ties to India. Last week the company signed an agreement with the SemIndia consortium. AMD is licensing its flagship chip design to SemIndia, a group of Indian chipmakers that plans to build a $3 billion factory.
The lure for both Intel and AMD is clear, analysts say. India has emerged as both a supplier and consumer of chips. And its workers offer top-notch technical skills and English proficiency — at relatively low wages.
Both Intel and AMD already get most of their revenue from outside the U.S. Future growth for the two companies will mainly come from overseas, analysts say.