Intel $1 billion inside India

Intel will also train 500,000 Indian teachers ‘‘for the future’’ under its education programmes, and make India a new centre to churn out product innovations. But the tech giant is sticking to its two Asian chip-making units in China, and staying focussed on the predominantly ‘‘services, software, design and engineering’’ orientation of India.

‘‘We are still in discussion with the Indian government to set up a manufacturing plant here. Nothing is firm yet,’’ said Barrett. ‘‘India may grow increasingly powerful in manufacturing, just as China will grow in services and product development, but for now we do not plan to manufacture in India,’’ he said.

The low-cost, made-for-India PC, however, is not small fry. A key deliverable from Intel India, it will be India’s first full size branded PC with a low price tag. ‘‘We will bring out a low-cost PC — not a gadget or semi-PC that some are interested in, but a fully-functional computer meant for Indian conditions — priced in the range of a few hundred dollars,’’ said Barrett.

The PC will combine dust and moisture resistance with a rugged design that is in prototype stage today. It will run on a car or truck battery, may be left out in the rain and be fully functional.

Lowering the cost of computer chips while improving their efficiency is at the heart of the ongoing AMD versus Intel race. Last week, smaller rival AMD promised its technology to a consortium of Indian-origin businessmen who will invest $3 billion in a chip fabrication unit.

Intel Capital has in the past invested in NIIT India, Rediff.com and Indiainfoline.com, and now plans to find mobile telecommunications, broadband software and hardware design companies to fund.

‘‘We are delighted by the phenomenal growth of India’ tech sector, the pace of IT adoption here and the drive of India’s business community,’’ said Arvind Sodhani, President, Intel Capital. Around 40 per cent of Intel Capital’s global $4 billion investments have been made outside the US.

Intel, however, will grow in India through investments in teacher training and more philanthropy. The company will now export a matching-contribution scheme in India from the US, under which every 20 hours of volunteer work done by Intel India employees will lead to a $50 donation by Intel to the educational institution.

Barrett also sought to correct hand-me-down wisdom regarding the role of computers in society. ‘‘Computers do not result in learning by themselves, good teachers do…By the time Intel completes 15 years here, we will have trained 1 million teachers in India and that is a crucial effort,’’ said Barrett.