Intel will invest over $1bn (£600m) in India over the next five years to boost its research and development facility in Bangalore and expand its venture capital fund.
Intel said $800m will be spent on expanding and improving its Bangalore research and development centre, with more being spent on marketing, training and community programmes.
The Bangalore operation already employs 2,800, and Intel has not said how many more it will employ following the new investment.
In addition, $250m will go into a venture capital fund designed to help grow and support India’s new IT businesses.
The venture capital money will go to Intel Capital, which has already invested in more than 40 Indian companies since 1998. Intel said some of the cash will help support companies in India’s burgeoning IT services industry.
The Indian cash injection was announced in Delhi by Intel chairman Craig Barrett. Intel rival AMD also recently announced it was to expand its Indian operations.
The Indian government has been trying to tempt Intel to set up a chip fabrication facility in the country, but so far Intel has not been persuaded.