AMD signs MoU with Semindia

AMD announced a broad agreement with SemIndia covering
manufacturing, technology licensing, and business development to meet the
growing demand for computers based on x86 microprocessors in India. SemIndia is
working with the Government of India, towards a public-private partnership (PPP)
initiative designed to bring semiconductor manufacturing capabilities to India.

The Memorandum of Understanding (MOU) was signed by Dr Hector
Ruiz, Chairman of the board, President and CEO of AMD, and Dr Vinod Agarwal,
Chairman of the board, SemIndia, in the presence of Dayanidhi Maran, the
Minister for Communication and Information Technology.

HECTOR RUIZ Confident about India as a location for high-tech manufacturing

India represents a major market opportunity for desktop and
laptop PCs and internet appliances. Industry observers expect the market to
experience strong growth in the near future given the impetus provided by the
Government of India to increase PC penetration and internet connectivity. The
agreement allows SemIndia to license AMD's process technology 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.

Hector said, "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."

"This announcement reflects the confidence that global
players have in India as a major information technology market and a location
for high-tech manufacturing", said Dayanidhi Maran, Honourable Minister for
Communications and Information Technology. "We are excited to see the
commitment demonstrated by AMD and SemIndia, and the Government of India is backing this initiative solidly."

"With support from the Government of India and AMD's
proven process technology, SemIndia is creating a strong foundation to bring
world-class wafer fabrication and ATMP capabilities to India", said Vinod.
"Our vision is to make India a global hub for semiconductor manufacturing,
and this agreement should bring world-class wafer fabrication to India for the
first time."

Earlier this year, Dayanidhi Maran met with Hector Ruiz in the US to discuss
opportunities to jointly grow the India market. He had championed the cause for
increasing PC penetration, internet connectivity, and high-tech manufacturing in
India.

DQC NEWS BUREAU