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Intel Dismisses Indian Manufacturing Report

Intel has called news reports that it will establish a chip manufacturing operation in the southern city of Chennai, India, speculative.

The report of a $45 million investment by Intel was the second to surface recently.

Verghese Thomas, Intel's communications manager in India, said the report carried in India's Economic Times "is pure speculation, and currently there are no plans to set up a manufacturing facility in India."

Still, speculation that Intel is at least considering a test and assembly facility in India is unlikely to end any time soon. Senior industry executives have in recent weeks been speaking of what they see as Intel's genuine interest in manufacturing in India. Intel currently has only a software development center here employing about a 1,000 engineers. Software development for a next-generation processor for servers is one of the activities being carried out here.

Establishment of a full-blown semiconductor fabrication facility seems unlikely given the logistical problems that even PC manufacturers often complain about.

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