Bangalore: Global chip maker Intel Corporation plans to set up a development centre in Bangalore with a capacity to house 3,000 software and electronics professionals with an investment of $ 41 million (Rs 196.8 crore), a senior Karnataka government Minister said on April 22.

Large and Medium Industries Minister R V Deshpande told reporters that Intel has chosen to establish this facility in Bangalore against several international competing locations like Malaysia, Russia and China.

Intel South Asia Director (sales and marketing) Avtar Saini said the company continued to expand its facilities in India, but declined to comment on the specific investment announcement made by the Karnataka government.

"This is part of the additional $100 million investment commitment made by Intel CEO Craig Barett during his India visit last year and adding 3,000 people by 2005-06," Intel Technology India Pvt Ltd president Ketan Sampat said.

Both Intel officials declined to comment on the specific investment nor the projected ramp up in employee strength.

Deshpande said the construction of the campus-style Intel development centre for design and development of next generation microprocessors, semi-conductors and memory product would start next month and expected to be operational in eight to 10 months.

He said the centre will work on cutting edge technologies in the area of hardware and software design and development, validation, system engineering and R&D services for the parent.

PTI