Intel, the world's largest chipmaker, is developing the next microprocessor in its Xeon range at its centre in Bangalore.

This is the first time the firm is developing a chip in its totality at a centre outside the US.

Intel is also moving a major part of its mobile chip platform and Internet switch development work to India. However, the company feels the time is not ripe for manufacturing chips in the country.

"We are developing the next generation of the Xeon microprocessor entirely at the design and development centre in Bangalore, which was opened about seven months ago. We want to utilise the centre to develop products in future," Ketan Sampat, president of Intel India, said on the sidelines of the annual session of the Manufacturers' Association of Information Technology in Bangalore on Friday.

"In the case of the new Xeon microprocessor, the design at the conceptual stage and the complete development of the project will be done here (Bangalore). Only the production will take place outside."

The microprocessor is likely to be developed by the beginning of 2006.

Outside the US, Intel has design and development centres in India and Israel, of which the Indian centre is the largest. "The Indian centre is a key component in our strategy," Sampat said.

Intel had announced major investment plans in India for the next few years to strengthen its existing software operations and start designing microprocessors.

The Bangalore centre is also engaged in designing and developing high-end, 32-bit Intel architecture microprocessors for servers and large computers.

The Xeon factsheet

• Developed for dual processor-based servers and workstations.
• Xeon-based machines targeted at business computer market.
• Offers high-speed and multi-processor computing with better graphic features.
• Present models are available at speeds of 1.4-3.06 GHz.