International
Intel may build chip plant in India; $1 billion in other investments announced
By Finfacts Team
Dec 5, 2005, 14:28

Intel, the world's largest chip maker, said today that it plans to invest more than $1 billion in India to strengthen its research and development and invest in telecoms and technology start-ups.

Intel's largest overseas manufacturing facility is located in County Kildare, Ireland. Last week Intel announced the investment of $3 billion in Israel to build a second wafer manufacturing plant.. - India does not currently have a chip-making facility due to a lack of continuous power and deficient ports and roads, according to analysts.

Intel has a development center in Bangalore, India's technology hub, which designs and develops software to power computer chips for high-end networks for Internet-based applications.

"We will grow our local operations, boost venture capital investments and work closely with the government, industry and educators," Intel chairman Craig Barrett told reporters.

Barrett said $800 million would be invested over the next five years to expand research and development at Bangalore in addition to marketing, education and community programs.

The Bangalore center, which opened in 1998, has 2,800 employees.

Intel will also create a $250 million India-specific venture fund to invest in start-ups focusing on mobile communications, broadband applications and mobile commerce.

Barrett said Intel was in talks with the Indian government on setting up a chip-making facility in India, but no decision had been reached yet.

Intel rival Advanced Micro Devices Inc. has agreed a deal with consortium SemIndia to supply technology for a proposed $3 billion chip-making factory in the country.

Barrett said if the firm did set up a chip fabricating unit in India, it would be wholly-owned by Intel.

Indian demand for chips is forecast to rise to $30 billion a year by 2015.