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India a major threat to US dominance: Intel chief

October 10, 2003 18:43 IST
Last Updated: October 10, 2003 18:43 IST


Observing that India and China are 'key threats' to continued American dominance in important high technology sectors, Intel Chairman Andrew S Grove has said India could surpass America in software and tech-service jobs by 2010.

India's booming software industry, which is increasingly doing work for US companies, could surpass America in software and tech-service jobs by 2010, Grove, one of the founding fathers of America's hi-tech industry and co-founder of Intel, told a global technology summit in Washington via satellite on Thursday.

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He warned that America's software and service industries, strong drivers of US economic growth for nearly two decades, are showing signs of emulating the struggles of the US steel and semiconductor industries.

He said that the nation's software and service businesses are under siege by countries like India and China taking advantage of cheap labour costs and strong incentives for new financial investment.

While the US economy as a whole is improving, its high-tech employment is not, he added.

According to industry figures, he pointed out, more than half a million technology jobs were lost from mid-2001 to mid-2003. Many of these losses were due to a contraction of the tech sector after the dot.com bubble (in the telecommunications sector) burst in 2000.

Grove said the US tech industry itself is responsible for numerous jobs leaving the country, as firms take advantage of considerably cheaper labour costs in India and elsewhere.


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Number of User Comments: 19




Sub: INDAI : THREAT TO AMERICAN DOMINANCE

Respected Sir, The cheap labour force of India compounded by the technical prowess of the indians will ultimately move the entire gamut of software services ...


Posted by Arnab





Sub: I disagree

I disagree. The number of tech wrkers in India is no indiaction of india being the leader of the so called hi-tech sector. Let us ...


Posted by Vishal





Sub: india- a software giant OR a failing dream ofthe future

Hi, with respect to the article on the website I would like to say that India may surpass US in software but a country 's ...


Posted by santosh





Sub: India a major threat to US sway

Yeah after Bubba Grover has made a multi-million dollar fortune using the same CHEAP LABOR it is time to clog the conduit. Typical! What a ...


Posted by Observer





Sub: India threat to US, says Intel

Don't use such inflammatory headlines for attracting the attention of the readers. The headline is totally misleading.


Posted by Sharad Gadadare




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