Chip giant Intel is investing an extra $40m in the next two years to expand its campus in Bangalore. The completed building will provide work space for 1, 200 people.

The firm has hired 800 people in each of the last two years and expects that rate to continue, according to Reuters. Intel's Indian centre, its largest outside the US, deals with all Intel product lines except flash memory.

The centre will develop Centrino mobile and entreprise applications. The cornerstone for the new building was laid by outgoing chief executive Craig Barrett. Barrett leaves Intel in May next year. He will be replaced by current president Paul Otellini.

Barrett did not rule out building a fabrication plant in India. He said: "The question is whether we will put up a manufacturing plant in India. I will not say no to that. India is one of the several countries that we are currently evaluating from a manufacturing perspective. We are not ready to announce a location for our next manufacturing plant at this time. India is one of the several competitors," according to sify.com. ®

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