Intel Corporation today announced the establishment of a $200 million venture capital fund to invest in Chinese technology companies developing innovative hardware, software and services. "With the establishment of the Intel Capital China Technology Fund, Intel plans to stimulate local technological innovation and the continued growth of China's IT industry," said Intel President and CEO Paul Otellini. "We will invest in Chinese companies to accelerate technology adoption locally and to foster development of innovative technologies with potential for global distribution."

The announcement was made in Beijing and comes on the 20th anniversary of Intel's activity in China.

The Intel Capital China Technology Fund will be used to invest in companies "that complement Intel's technology initiatives and to further build out the Internet infrastructure in China,' according to Intel. Examples given by the company of initial focus areas include cellular communications, broadband applications for consumers, and semiconductor design.

"The pace of IT innovation is accelerating," said Intel Capital President Arvind Sodhani. "Companies around the world should look beyond China's purchasing power and view the country's innovators as potential suppliers. We look forward to working together with the country's leading technology companies to grow China's IT industry together."

Notable examples of current Intel Capital investments in China include BCD Semiconductor Manufacturing Ltd., an analog power integrated circuit design and manufacturing company; Comlent Holdings Inc., a radio frequency chip maker; HiSoft Technology International Ltd., a software outsourcing company; Maipu Holdings Ltd., a router and data communications company; and Pollex Mobile Holdings, a cellular phone software applications provider.