The world's largest microprocessor company Intel Corporation announced on Monday that it would invest $41 million in building a new campus in Bangalore. It is also developing the new Intel Xeon processor in its Bangalore laboratory.

The 43-acre facility, which has an initial capacity to house over 1,000 engineers, will undertake research in hardware and software design, validation, system engineering and development for next generation microprocessors, semiconductors and memory technologies.

"India continues to play an important role in helping Intel to deliver architectural innovation to customers," Ketan Sampat, president, Intel Technology India, said in a statement.

"In extending our areas of focus in Bangalore, we also hope to contribute to India's quest to become an infotech nation," he added.

The announcement built on the commitment already made by the Intel India Development Centre to help the country develop a balanced technology industry, the company said in a statement.

Intel has been adding new product development and design activity in India in recent times. The company is developing its new Intel Xeon processors in India.

It has also set up Asia's first design team to focus on the enhancement and development of next generation Intel Centrino Mobile Technology in Bangalore.

Intel has chip design and development centres in India and Israel. The Indian chip design and development centre is the largest centre it has outside the US.

Intel has announced major investment plans in India in the next few years as part of its initiatives to strengthen existing software operations and begin micro-processor designing in the country.

The chip design team in its Bangalore development centre is also engaged in high-end, 32-bit Intel architecture microprocessor design and development for servers and large computers.

Set up in Bangalore in 1998, the Intel India Development Centre provides leading edge hardware and software solutions designed to provide the company a competitive advantage in the market.

The centre focuses on increasing Intel's design and development capabilities in India to deliver high quality, cost-effective solutions for Intel's major business units.