[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Monday, 5 December 2005, 12:30 GMT
Intel plans $1bn India investment
Indian computer worker in Bangalore
Indian workers are cheaper to employ than their US counterparts
Intel, the world's largest chipmaker, plans to invest $1bn (576m) in India over the next five years.

The firm will spend $800m on boosting its research and development operation, with the rest of the cash being used to finance investment in firms.

Intel has an R&D centre in Bangalore that produces software to drive its microchips, computers and networks.

Firms like Intel are expanding in India as the wages of software engineers are fraction of what they cost in the US.

Reports estimate that the average wage for a software engineer in India is less than a sixth of that for a similar professional in the US.

Time to grow

Intel's division in Bangalore is the company's biggest non-manufacturing operation outside of the US.

Chairman Craig Barrett announced the investment plans on Monday during a trip to south Asia.

"We will grow our local operations, boost venture capital investments and work closely with the government, industry and educators," Mr Barrett said.

Intel said it was in talks with the government about manufacturing chips in India, although it added that it had yet to make a decision as to when, if at all, that would happen.

"We are still in discussions with the Indian government on the possibility of having a manufacturing site in India," said Mr Barrett.

Strong growth for Indian economy
30 Nov 05 |  Business
Intel deal for iPod memory chips
21 Nov 05 |  Business
Samsung-Apple chip talks collapse
17 Oct 05 |  Business
Intel sunny about holiday sales
03 Dec 04 |  Business
Intel sees profits rise to $1.9bn
12 Oct 04 |  Business
Intel sees big changes to the net
10 Sep 04 |  Technology

The BBC is not responsible for the content of external internet sites


Americas Africa Europe Middle East South Asia Asia Pacific