"We are in discussion with the Indian government for setting up an ATMP (assembly-test-mark-pack) plant in India with partners," Paul Otellini told a news conference.
In December Intel said it planned to invest more than one billion dollars to expand in India in the next five years, mainly on research and venture capital opportunities.
Intel has invested 700 million dollars in India in the past decade, when technology firms rushed into the country to take advantage of its cheap but skilled workforce.
India has been trying to match its success in software and technology services outsourcing by getting companies such as Intel to set up manufacturing units as well.
But Otellini said the company had no plans for a manufacturing plant in India.
"There are ... no plans to set up a fabrication facility."
Intel employs about 2,700 people at its development facility in Bangalore, where the recently launched Centrino duo chip was designed and developed for laptops. The company also said its Ind