Intel Capital China fund says invests in three firms
Mon Aug 15, 2005
HONG KONG, Aug 15 (Reuters) - Top global chipmaker Intel Corp. (INTC.O: Quote, Profile, Research), which in June set up a $200 million venture capital fund targeting Chinese technology firms, on Monday unveiled the fund's first three investments.
China is the world's second largest personal computer market and is a key growth driver for Intel, the world's dominant maker of microprocessors that power PCs.
Intel Capital, which is keen to spur growth of the overall chip market, said it bought stakes in chip designer Chipsbrand Microelectronics; Onewave Technologies Inc., which develops multimedia network infrastructure; and VeriSilicon Holdings Co. Ltd., a chip design foundry.
The size of the investments was not disclosed, but Duane Kuang, director of Intel Capital China, said the firm's venture investments are typically in the $3 million to $5 million range.
Kuang said the Intel Capital China Technology Fund is scouting for companies at all stages of development in the wireless, digital media, and chip design industries.
He said Intel Capital, which sifts through roughly 15 to 20 investments leads each week in China, has also seen a recent resurgence in opportunities in software and enterprise solutions.
"We certainly see very large market opportunities in China in the market segments we are interested in," Kuang told a media briefing.
Intel Capital made its first China investment in 1998, and has invested in roughly 50 firms in the country.
Recent China investments include a stake in cellphone design firm China Techfaith Wireless Communication Technology Ltd. (CNTF.O: Quote, Profile, Research), which listed on Nasdaq in May in $140 million IPO.
It also bought pre-IPO stakes in Nasdaq-listed UTStarcom Inc. (UTSI.O: Quote, Profile, Research), AsiaInfo Holdings Inc. (ASIA.O: Quote, Profile, Research) and Sohu.com (SOHU.O: Quote, Profile, Research).
Globally, Intel Capital has invested more than $4 billion in some 1,000 companies. The China fund is Intel Capital's first targeting a specific country.
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