HYDERABAD: California-based Xilinx Inc has identified Noida-based CG CoreEL as the first recipient of its $75-million corporate venture capital fund, Asia Pacific Technology Fund. Xilinx, also the world's largest programmable logic services company, is planning to raise the headcount of engineers at its Hyderabad facility from 90 to 300 in the next three to five years.

CG CoreEl is a seven-year-old company that provides embedded systems design services. "We are negotiating terms with CG Corel. The level of investment in the company will be known soon", said Willem P Roelandts, president and CEO, Xilinx, addressing a press conference here on Wednesday. The company is also in talks with few other companies in India for investment, all of which are at an early stage, he added.

Xilinx's Hyderabad center is a joint venture with CMC Ltd and it has a headcount of 90 engineers, contributing to 10% of its global strength. The company undertakes design services in India. "India does not have sufficient fab facilities for manufacturing of semiconductors. Once the Fabcity is set up, we will certainly look at the option of manufacturing in India", Mr Roelandts said. The company also began sales support in India this year to cater to domestic customers.

Xilinx is currently working on a 45-nanometer chip, which would be released in 2008. "As the semiconductor technology advances, it is possible to step up capabilities from the existing 90nm to 65nm to even 45nm. The advantages of a 45 nm chip over a 90nm chip are that one can attain the same storage density at half the price. We are confident of producing 45nm chip", he said. These advanced chips will find use in high-end flat panel displays and cars with advanced features, he added.