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Intel, Motorola may shift to India

July 15, 2004 14:43 IST

Intel and Motorola might dump Israel in favour of India and China as the hub of their activities, the Israeli representative of global IT consulting firm Gartner said in Jerusalem.

Baruch Gindin, Gartner's managing director for Israel and the Middle East, has warned the Knesset Science Committee of the risk that the giants in semi-conductors and chips industry might leave Israel in favour of the better and thriftier alternatives being offered by India and China, Ma'ariv International reported on Wednesday.

The companies need to fully adapt to supply for the expanding market demand and the manufacturers desire of income maximisation is better fulfilled by India and China, he warned.

Gartner has recommended that the government must resolve this problem immediately by changing the tax laws and by launching a global campaign emphasising the abilities and advantages of the industry in Israel, the report said.

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