June 15, 2005 – Intel Corp. has reportedly agreed to invest US$400 million to build a chipmaking plant in India, said India’s Information Technology Minister Dayanidhi Maran to a group of reporters on his return from a tour of the US.

China and Vietnam also were in the race for the same project, though Intel already has chip manufacturing facility in China. Maran said Intel’s decision was conveyed to him by the company’s Chairman Craig Barrett.

Intel has shortlisted the southern Indian cities of Madras and Bangalore and Noida, a satellite town adjoining the Indian capital, to locate the proposed plant, he said.

“They (Intel) will make a final announcement in a month’s time,” Maran said.

Intel currently has a design center in Bangalore, India’s technology hub, where it employs some 2,400 engineers and professionals.

Also, Maran said Intel Advanced Materials Group Inc., which makes semiconductors, has tied up with IBM Corp., India Electronics Manufacturing Corp. and the India Semiconductor Association to explore the possibility of a fabrication plant in India.

“With Nokia and Intel coming, we need to have a semiconductor fab in India,” Maran said.

Earlier this year, Nokia said it would invest US$150 million to build a mobile phone manufacturing plant near Madras in southern India.