"We will invest greatly in research in China to meet requirements in the country and around the globe. For China, we're researching products for Net cafes and backbone networks for communications," said William Siu, vice president and general manager of Intel's channel platform group.

Intel's local research center is in the Zizhu High-tech Park in the city's southwest.

Tan said the expansion of research capability represents "a great leap" as Intel China employed only 50 research engineers six years ago.

Intel's investment in China has now surpassed US$1.3 billion.

Seven divisions are under the new center, including the China Platforms Group, Digital Health Group and Digital Home Group.

"China and India have become prime locations for investment by multinational organizations because of their skilled labor and low wage costs," said Mark Sullivan, partner at Mercer, a US-based human resource firm.

(Source: Shanghai Daily)