Intel's Craig Barrett isn't letting the fact that he can't see a tech turnaround stop him from investing in engineering. The chipmaker's CEO said Thursday that Intel will spend up to $200 million to expand a software-design center in Bangalore, India.
Word of the investment comes two days after Barrett, on a tour of the Far East, said he could not predict when tech spending by businesses will pick up. Nonetheless, Barrett, speaking at a news conference, said Intel is considering tripling the number of engineers working at its Bangalore facility, from 1,000 to 3,000, during the next few years. "Our initial plans would be more on the engineering and design aspect as opposed to manufacturing and production," Barrett said.
On Tuesday, Barrett said, "We haven't seen much improvement in the computing environment because companies are not investing. When it turns around will be when companies start reinvesting; I'm not forecasting when that will happen." His comments pulled Intel shares down 95 cents Tuesday, to close at $17.18.
Intel said in July it expects to post third-quarter revenue of between $6.3 billion and $6.9 billion. Last year, Intel reported third-quarter revenue of $6.5 billion. Intel is scheduled to hold a midquarter financial update next week.