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"This investment demonstrates Intel's long term commitment. It is also a vote of confidence in India's R&D infrastructure. India has evolved into one of the world's leading technology centres."

The Intel Corporation Chairman, Mr Craig R. Barrett, at a panel disussion in the Capital on Monday. — Kamal Narang

New Delhi , Dec. 5

CHIP maker Intel's Chairman, Mr Craig Barrett, has announced an investment of over $1 billion in India in the next five years on activities that include expansion of research and development operations in Bangalore, marketing, education initiatives, and a $250-million venture capital fund to invest in technology companies.

But those expecting Intel to match rival AMD's enthusiasm on the manufacturing front are in for a slight disappointment as the visiting Intel Chief said that, while the discussions with the Government on the possibility of establishing a manufacturing plant were still on, the company was not ready to announce anything as yet.

"It is still a discussion in progress," he said.

Manufacturing: He, however, talked about what the company looked for while setting up manufacturing facilities in other parts of the world.

"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," said Mr Barrett.

Intel has manufacturing facilities at several locations in the US, Ireland and Israel.

Expansion in R&D: Elaborating on the company's expansion in India, Mr Barrett, who is on his seventh visit to the country, said, "This investment demonstrates Intel's long term commitment. It is also a vote of confidence in India's R&D infrastructure. India has evolved into one of the world's leading technology centres. These investments, community programmes and collaborative efforts will create an environment that fosters innovation and entrepreneurship."

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 Centre in Bangalore from 2,800.

This centre focuses on hardware and software engineering for Intel products sold globally. The company, however, did not divulge the projected growth in employee count.

Part of the funds will also flow into local community programmes such as training teachers to use technology through the Intel Teach to Future programme.

The company is involved in training five lakh teachers, and plans to add another five lakh to the programme.

"In addition, the Intel Learn programme, 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 Mr Barrett.

Under the Volunteer Matching Grant programme, aimed at encouraging employees to volunteer time to educational institutes, the Intel Foundation will donate $50 to the institutes for every 20 hours an employee volunteers at that school.

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.

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