Intel to invest $1 bn in India

To spend $800 million on expanding its business operations.

Intel Corporation Chairman Craig Barrett today said his company would invest more than a billion dollars in India over the next five years.

Intel will spend $800 million on expanding its business operations. The company has earmarked $250 million for setting up a venture capital fund"" Intel Capital India Technology ""to invest in start-ups.

The fund will focus on Indian hardware and software companies, aiming at developing technology for local use. It would also invest selectively in technology-oriented service companies that targeted overseas markets, the world's largest chip maker said in a statement.

"In addition to marketing, education and community programmes, Intel's $1 billion-plus investment road map includes plans to invest $800 million over the next five years to expand its research and development centre in Bangalore," Barrett said at a press conference here.

The Bangalore centre would also be used for increasing PC penetration in India, Barrett said. Barrett, however, ruled out setting up a manufacturing facility in India in the immediate future.

He said, "We are still in negotiations with the central government for establishing a fabrication facility, but are not likely to set one up in the near future."

He also said there was no possibility of any transfer of technology to set up a fabrication facility. 'If a manufacturing plant ever happens, it will be wholly owned by Intel. Intel is not interested in a third-party fabrication facility like advanced micro devices,' he added.

Reacting to the development, Communications and Information Technology Minister Dayanidhi Maran said Intel's investment would strengthen the country's information technology sector.

Equally hopeful was Finance Minister P Chidambaram. He said the India-specific venture capital fund would help entrepreneurs who were engaged in front-line R&D. With Intel's backing, this would be a win-win situation for both, he added.

"The areas of focus for us will be companies in the business of cellular operation, broadband applications, wireless technology and hardware and software designing," said Intel Capital President Arvind Sodhani. Over the last seven years, Intel Capital has invested $100 million in 40 Indian companies, including Rediff, NIIT and Tejas Networks.

The company would also enhance its staff strength at the Intel India Development Centre in Bangalore from the existing 2,800 employees, Barrett said.

But did not provide details.

Barrett said Intel would invest in its education initiatives to impart computer training to 500,000 teachers in schools across the country and continue with the 'Intel Learn' programme.