LONDON Intel Corp.'s venture-capital arm is planning to invest a further $500 million in China over the next three to five years on companies focusing on wireless broadband, communications, media technology and clean technology.
The company says this focus will complement its corporate initiatives and help expand technology market segments in China.
The Intel Capital China Technology Fund II comes after the company's first $200 million China Technology Fund in 2005, its largest single-country technology fund at the time. The fund invested in 28 companies, including: Neusoft Group, Chinacache International, Chipsbank Microelectronics, DAC, Legend Silicon, Montage Technology, and Palm Commerce.
The company says notable liquidity events involving portfolio companies from the first fund include Actions Semiconductor, Kingsoft and Neusoft Group.
The new fund is also the largest of its kind for a single country for Intel Capital.
The first companies likely to benefit from the new fund include Holdfast Online Technology Co. and Newauto Video Technology Inc. Holdfast is a developer of technology for online gaming, and Newauto Video makes video equipment and network gear. Intel did not reveal the size of the investment in the two groups.
Last year, Intel Capital invested about $639 million, 37 percent of which was being spent outside the U.S. Since 1991, Intel Capital has invested more than $7.5 billion in about 1,000 companies across more than 45 countries.
Intel is currently building a $2.5-billion wafer fab in Dalian in China with the start of operations scheduled for the first half of 2010.