Intel Plans China Tech Fund

BEIJING (AP) – Intel Corp.'s venture capital arm said Tuesday that it has set up a new $500 million fund to invest in Chinese technology startups.


The new fund, Intel Capital China Technology II, will invest in Chinese companies involved in wireless broadband, technology, media, telecommunications and environmentally friendly technologies, the world's largest computer chip maker said in a statement.


The new fund has already invested in Holdfast Online Technology Co., which helps host console games on networks, and Newauto Video Technology Inc., which sells television equipment to Chinese TV stations.


Intel Capital has expanded the amount it invests outside the U.S. in recent years. In 2007, it devoted 63 percent of its total investments to North America and nearly 30 percent to Asia.


Intel Capital President Arvind Sodhani said the company's second China fund plans to invest its US$500 million over five to seven years.


The company set up in June 2005 its first fund targeting China, the $200 million Intel Capital China Technology Fund. That fund was meant to spend its allotment over the same period as the new fund — but ended up spending all its capital in less than three years.


Intel Capital also said it will consider having Chinese companies in which it has invested list on a growth enterprise share market due to be set up in China.


“We are absolutely supportive of this new market,” said Sodhani.


The government has not yet given a timeline for setting up the growth enterprise market, a secondary board that will target high-technology companies.