Intel (News - Alert) said it plans to partner with Taiwan to set up a multi-million dollar Internet computing research laboratory.

The AFP news agency reported that Intel would work with Taiwan’s National Science Council and a leading Taiwanese university to establish a "cloud computing" research center, at an estimated cost of $23.5 million over the next three to five years.

"Cloud computing" generally refers to Internet-based computing, where shared resources, software, and information are hosted online and provided to computers on demand.

Intel did not specify the amount it plans to spend.

Visiting Taiwan, Intel president and CEO Paul Otellini (News - Alert) announced a series of new and expanded partnerships with Taiwan's government, industry and education system intended to cement the island's status as the leading center of innovation for the global IT industry, according to AFP.

Established on Feb. 1, 1959, the National Science Council (NSC) of the Executive Yuan (executive branch of the Republic of China) is the highest government agency in Taiwan responsible for promoting the development of science and technology.

The deal between Intel and the NSC represents the fruition of an NSC plan implemented last year to attract some of the world’s leading research institutions and labs to form research partnerships in Taiwan, according to a report in Taiwan Today.

The NSC plan states that if one of the world’s top research labs, research and development units or top 50 universities wishes to set up a research branch in Taiwan, the ROC government agrees to shoulder part of the cost, according to Taiwan Today.

In addition to making the announcement, Otellini is expected to sign a memorandum of understanding with Taiwan’s Ministry of Economic Affairs on the development of cloud computing.

Over the years, the NSC has evolved and adapted its structure to meet the needs of changing times, but it has always retained its fundamental character as a funding organization.