Intel launches second China fund

The investment arm of global semiconductor manufacturer Intel Corporation has launched its largest country-specific fund to date.

Intel Capital, the venture arm of the semiconductor giant, has launched Intel Capital China Technology Fund II, a $500 million (€318 million) fund to invest in local Chinese companies.

The fund does not have a stage focus and will invest on an opportunistic basis across all stages of the technology sector in China. Investments will be made in media, technology, telecommunications, wireless broadband and clean technology.

The second China fund is more than double the size of its predecessor, a $200 million fund established in 2005.

Cadol Cheung, managing director at Intel Capital Asia Pacific, said in a statement the 2005 fund has made investments in more than 28 companies and “it is time to renew our commitment”.

Intel “expects to further increase our investment in China by pursuing business opportunities and participating in larger deals with an eye on leading rounds,” he added.

Separately, Intel Capital has also made two investments from its previous China fund in Holdfast Online Technology Company and Newauto Video Technology.

Holdfast is a provider of LAN-based or console game platforms and Newauto Video Technology manufactures video equipment for television stations and provides digital content editing and live sports broadcasting services. The Intel Capital China Technology Fund I is fully invested following these two investments.

Arvind Sodhani, president of Intel Capital, said the firm “has invested in more than 70 companies across China and Hong Kong” since 1998.

Intel Capital started operations in 1991 and has since invested more than $7.5 billion in about 1000 companies across 45 countries. The company also manages other region-specific funds focussed on the Middle East and Turkey, India and Brazil.