Intel to invest $1 bn In India

The world's largest manufacturer of computer chips, Intel Corp., announced on Monday that the company would invest more than $1 billion in the next five years to expand its operations in India and in local technology companies. Intel also announced the establishment of a $250-million venture capital fund to help stimulate technological innovation in India and drive continued growth of the country's IT industry.

Intel's announcement follows the one made last Wednesday by Advanced Micro Devices, Inc. or AMD, the US producer and designer of innovative micro-processors, memory devices, and low-power processor solutions, to provide technology to Semindia for a $3-billion advanced semi-conductor manufacturing facility in the country. The Indian demand for semiconductor chips is erected to be a $30 billion market each year by 2015.

"The pace of technology innovation is accelerating. The investment demonstrates the company's long-term commitments and builds on the foundation we created during the last ten years," said Intel chairman Craig Barrett. "Through the Intel Capital India Technology Fund, Intel will help Indian companies drive technology adoption locally and identify new business opportunities globally. We will grow our local operations, boost venture capital investment and work closely with the government, industry and educators to increase the Impact of the country's Information and Communication Technology," he added.

The fund will be used to invest in companies that can benefit from the rapid growth in the domestic IT market segment in India, and provide local businesses with capital to help nurture important technologies and products developed for local use. Intel Capital will also use the fund to selectively invest in technology-oriented service companies that target overseas market segments using India's highly talented resource base.