Intel Earmarks $1B For India

Intel will invest more than $1 billion in India over the
next five years to increase its presence in a country that continues to
evolve into an economic powerhouse. The plan was announced by Intel Chairman
Craig Barrett today.

“We will grow our local operations, boost venture-capital investments and
work closely with the government, industry and educators to increase the
impact of the country’s information and communications technology industry,”
Barrett said.

Of the total, approximately $800 million is earmarked for expanding research
and development at Intel’s research and development center in Bangalore.

The Bangalore facility was opened in 1999 and has grown into the largest
non-manufacturing Intel site outside the United States. More than 1,300
workers at the facility focus on chip design, communications software,
digital signal processing and other technologies.

In addition, the company’s venture capital arm has established a $250
million venture capital fund to focus on Indian IT firms. Intel Capital
will back companies that will help nurture important technologies and
products developed for local use.

It will also invest in outsourcing service companies that target overseas
market segments. Initial focus areas include mobile communications,
broadband applications and wireless technologies.

“The pace of technology innovation is accelerating,” Barrett said. “Through
the Intel Capital India Technology Fund, Intel will help Indian companies
drive technology adoption locally and identify new business opportunities

Intel Capital made its first investment India in 1998 and has backed 40
Indian companies. Several have gone public or have been acquired, such as
Deccanet Designs, a communications design and software services company, and
FutureSoft, a telecom product and services company.

In recent years, Intel and others have taken a closer look at India and
discovered more than a place for inexpensive, tech- savvy labor. They see a
burgeoning market for products and services with growth rates outpacing the
United States and Europe.

Recently, Intel rival AMD said it will team with an Indian
firm and the Indian government to build a $3 billion chip plant in India.

And tomorrow, Microsoft’s Bill Gates will reportedly
begin a four-day trip in India. Gates will meet with government
officials, business leaders and programmers, according to the Associated

The software giant plans on investing $400 million in India.

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