Intel says investment in East won't affect Irish plans

Intel, which employs more than 3,000 people in the Republic, plans to ramp up its investments in China and Russia. But this extra spending shouldn't affect Intel's commitment to its existing Irish operations, the world's biggest chip-maker said yesterday.

"China and Russia are probably the two which will see the greatest percentage growth in our presence over the next several years," Intel's chief executive, Mr Craig Barrett, said during a visit to India.

Intel, which aims to invest about $100-$200 million (€102€204 million) in India over the next few years, is keenly looking at China, due to its manufacturing strengths, according to Mr Barrett.

China's manufacturing and engineering capabilities and Russia's engineering talent attracted Intel, which had earlier identified Israel, Ireland and India as its investment priorities, he said.

Intel said in May it was setting up facilities to assemble and test Pentium 4 chips at its Shanghai plant, which tests and assembles chips used in mobile phones and handheld computers.

Intel has invested about $500 million in China in the past five years, company officials said. The US chip giant plans to employ about 3,000 people in its Shanghai facility by 2004, up from more than 1,200 now.

Mr Barrett said Intel planned to more than triple the number of engineers to 3,000 at its Indian software design centre in a few years, while continuing to invest in manufacturing facilities in Ireland and Israel.

"That doesn't mean we will abandon our existing sites in countries such as Malaysia, the Philippines or the United States," he said. "It is really suggesting that we will look for growth, going forward, in places such as India, Russia and China."

Attracted by India's army of English-speaking software workers available at wages sharply lower than their US counterparts, technology giants including IBM, Oracle and Motorola are expanding their development centres.

An Intel Ireland spokesman said the corporation's strategy to invest more in Asia would not affect its Irish investment. "Of course, as these economies develop and gain more technology, we can never rest on our laurels. We've got to remain competitive." - (Additional reporting by Reuters)