Intel likely to set up ATM facility in India

Intel Corp, the world's largest chipmaker, is likely to set up an ATM facility in India at an estimated investment of more than $400 million.

Intel Corp, the world's largest chipmaker, is likely to set up an Advanced Test Manufacturing (ATM) facility in India at an estimated investment of more than $400 million.

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Indications to this effect were made available after a meeting between the visiting Information Technology Minister Dayanidhi Maran and Intel Chairman Craig Barrett.

"They have more or a less decided to come to India. They need some more time to complete formalities, which, I am sure, they will," Maran, who is on a five-day visit to the US, said in Silicon Valley on Wednesday.

During the meeting, designed to impress upon Intel the benefits of setting up the factory in India, the Minister also handed over a letter from Prime Minister Manmohan Singh in this regard.

Over the past year, India has been aggressively lobbying firms, including Intel, to set up manufacturing units in the country. "I have been having this discussion with Craig for several months, since he came and met us about eight months ago," the Minister said.

The chipmaker was yet to determine which city to set up the facility in, with Chennai, Bangalore and Noida in the running. During early discussions, Intel had indicated the plant would require an investment of about $400 million.

Although a number of multinationals have several software and chip design facilities in the country, none have set up fabs in India.