AMD says India is a key market for keeping up with the growing demand for high-tech chips

Advanced Micro Devices needs India to support up with the increasing request for its products, its enforcement vice president and main exertion serviceman told CNBC successful an exclusive interview.

"We person a planetary workforce. Our plan efforts are planetary and doubling down connected those investments, continuing our maturation successful India, are each portion of what we request to enactment gait with the increasing request for our products," Mark Papermaster said connected CNBC's "Squawk Box Asia" connected Thursday.

On Friday, AMD announced its plans to put astir $400 cardinal to proceed its maturation successful India. The concern volition spell toward gathering the firm's largest plan center, which is expected to unfastened earlier the extremity of 2023, arsenic good arsenic the summation of astir 3,000 engineering roles by the extremity of 2028.

"We started with a tiny fig of employees successful Delhi successful 2001. Today, we person implicit 6,500 full-time employees, and implicit 3,500 work contractors. So it's with a colonisation of astir 10,000 people. And we're truly pleased to beryllium increasing our concern successful India — a immense portion of our portfolio and merchandise development," said Papermaster.

AMD is 1 of the fewer firms that produces the high-end graphics processing units needed for artificial intelligence. AMD processors tin beryllium recovered successful a wide scope of devices including computers, servers and gaming consoles.

"We're truly excited astir MI300, our adjacent procreation AI chip. It's going to instrumentality connected the astir almighty AI spot successful the industry. And it couldn't travel astatine a much needed clip due to the fact that the manufacture needs much AI computing power," said Papermaster.

"And we person a plan facet of that being done successful India. We present person the India plan squad touching astir each merchandise that we make successful AMD," said Papermaster.

Ruben Roy, managing manager of equity probe astatine fiscal services steadfast Stifel, said that AMD is the "only viable alternative" to Nvidia's high-performance H100 and A100 GPUs.

"They're pushing precise hard. R&D is going up. They are investing rather aggressively successful AI," Roy said connected CNBC's "Squawk Box Asia" connected Wednesday.

Papermaster told CNBC, "What we absorption connected is leveraging the latest cutting-edge semiconductor nodes. And we bring our plan prowess to truly differentiate our products."

"That's wherever India is truthful immense for us. Because if you look astatine our planetary population, astir 25% of it is successful India, and we are an engineering dominated workforce," helium said.

This week, the authorities of the authorities of Karnataka said that Taiwan's Foxconn volition put much than $600 cardinal successful India arsenic portion of a telephone manufacturing task arsenic good arsenic a abstracted semiconductor instrumentality facility.

Papermaster said AMD is looking into further diversifying its proviso chains. This comes amid U.S.-China tensions that person impacted firms doing concern successful some countries.

"In presumption of de-risking our manufacturing, we bash person a diversified proviso base. And we volition proceed to look astatine options successful presumption of adding much diverseness to our proviso base," helium said.

"As a semiconductor plan institution that has a beardown basal successful India, we judge getting that diverseness of the proviso chain, and getting cardinal elements of that successful India, volition beryllium adjuvant to us."

He further added that India's Prime Minister Narendra Modi has a "strong program" called "Make successful India" which offers incentives for semiconductor companies to develop, manufacture and assemble products successful India.

In an net telephone Tuesday, Lisa Su, CEO of AMD, said that China is an important marketplace for the firm.

She besides said that determination is an accidental to make a China-specific AI spot successful bid to comply with U.S. export curbs, successful a determination that volition travel rivals Nvidia and Intel.

AMD posted better-than-expected second-quarter results on Tuesday adjacent arsenic the PC marketplace shows continued weakness.