Intel to hire 800 a year in India

BANGALORE: Intel Corp., the world's largest computer chip maker, said it would spend $40 million to expand in Bangalore over the next two years, maintaining its spending rate since the start of 2003.

Intel Chief Executive Craig Barrett laid the foundation of a new Intel building in Bangalore, which he said could accommodate 1,200 people on completion.

Santa Clara, California-based Intel has a large development center in Bangalore and the new building is part of expansion focused on high-end design and development work.

Intel hired 800 people a year in India in the past two years, and Barrett hinted that rate would be maintained, asking the company be judged on its "past actions and extrapolate forward".

Barrett said development work in India, Intel's largest engineering operation outside the United States, already covered all the company's product lines except flash memory chips.

The Intel chief dismissed claims of any competitive edge Advanced Micro Devices Inc. may have gained through its early adoption of 64-bit chips.

"We've got similar technology in our Xeon server line, which we have introduced," Barrett said, noting a corresponding desktop line had not been introduced due to the lack of operating system support, referring to Microsoft's delayed Longhorn OS.

Most independent estimates showed Intel had actually gained market share over the last five years, he added.

Barrett refused to make a financial forecast for the coming year. On Thursday he said he expected its operating performance in the first half of 2005 would be better than the first half of 2004.

Barrett blamed negative growth in the memory chip market for the zero growth expected in the semiconductor industry.

Barrett, who is stepping down as Intel CEO, said he would continue to be involved in engineering and company strategy. But the appointment of a new company president would be left to his successor, Paul Otellini.