Californian chip maker AMD is to set up a design centre in India, the first of its kind outside the United States. The centre to initially employ 50 engineers will be located in the technology hub of Bangalore.
AMD has said its plan is part of an expansion and would not involve laying off American engineers.
A row is raging in the US over whether the outsourcing of work to the developing world where costs are lower is costing US citizens their jobs.
"We are expanding engineering operations at all of our design locations," AMD's Randy Allen said.
AMD says it will invest $5m in the centre over three years.
AMD's rival, Intel, and chip makers such as Texas Instruments, Silicon Laboratories and Flextronics have already shifted part of their design work to India.
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