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Intel to invest $1 billion in India
By agencies
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Tuesday, 06 December 2005, 20:30 IST
NEW DELHI: The worldÂ’s leading chip manufacturer, Intel Corporation, decided to invest over $1 billion in India in the next five years on activities that include expansion of R&D in Bangalore, marketing and education initiative. Besides, the company is also setting up a $250 million venture capital fund to invest in technology companies.
After announcing the investment plan in India, commenting on to set up a manufacturing unit in India, the company’s Chief, Craig Barrett said, “The discussion with the Government on the possibility of establishing a manufacturing plant were still on. But he refused to disclose anything on this issue at present.”
He, however, talked about what the company looked for while setting up manufacturing facilities in other parts of the world. Barrett said, “We look at the installed base. For instance, in Ireland we have operated for 15 years and have an installed workforce. We also look at incentives on investment in manufacturing, tax rates, infrastructure and cost of operation.”
On company’s expansion plan in India, he said, “This investment demonstrates Intel's long term commitment. It is also a vote of confidence in India's R&D infrastructure.”
Out of the $1-billion planned investment, about $800 million will be used for expansion of business operations, including increasing the headcount at the Intel India Development Center in Bangalore from 2,800. The companyÂ’s new center would focus on hardware and software engineering for Intel products sold globally. However, Intel refused to give figures of the proposed headcount.
“In addition, the Intel Learn program, which focuses on how to use technology to solve problems, and which currently reaches out to students in two States, would be extended to six to seven additional States," said Barrett.
Intel - which has invested $700 million in the country till date - also announced the establishment of a $250-million venture capital fund — the Intel Capital India Technology Fund. The fund will invest in companies that are into hardware and software, Internet, broadband applications and wireless technology domains, and will also selectively invest in technology-oriented service companies that target the overseas markets.