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Thinkpad (AXcess News) New York - The world's no. 1 chip-maker, Intel Corporation (Nasdaq: INTC) said it planned to invest $1 billion in India over the next five years with a large investment, $800 million,in its Banglore research and development centre. Intel said it also planned onadding $250 million in capital in the Intel Capital India Technology Fund to explore new technology opportunities in India.
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Microsoft Intel has made investments in 40 Indian companies since setting up its Technology Fund in 1998. To date, Intel has invested $700 million in its India chip development centre where its costs are far less then in the United States.
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Laptop Computers Craig Barrett, Intel chairman, made the announcement while in India Monday. Barrett said that "The investment demonstrates the company's long term commitments and builds on the foundation we created during the last ten years."
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Shares of Intel closed down 53 cents, or 1.93%, at $26.90 following Barrett's announcement. Investors were lukewarm to Intel's plans to invest in its India business centre.
