Intel Capital Makes More China Investments
Staff Reporter -- EDN, June 27, 2006
Intel Capital has made four new investments from its China Technology Fund – a funding arm focused on fostering Chinese innovation in a handful of emerging markets in that country.
Intel did not disclose the investment amounts of the funding extended to Campus Media Inc., Montage Technology Co. Ltd., Star Softcomm Pte Ltd. And Winking Entertainment Ltd. However, the fund has $200 million under management and investments typically are between $1 million and $5 million.
"China’s growing technology market is a leader both in terms of product innovation and IT deployments," said Arvind Sodhani, president, Intel Capital, in a statement. "China’s success will accelerate economic prosperity both domestically and throughout the world. Intel Capital’s investments in Chinese companies are expected to contribute to China’s success."
The chip giant has invested in 12 Chinese companies since its inception a year ago. The new investments, together with earlier announced funding in more than 50 Chinese start-ups and companies, are aimed at cellular communications, broadband deployment, software applications and semiconductor design.
Campus Media operates an advertising network in university cafeterias across China; Montage Technology is a mixed-signal fabless integrated circuit design company; Star Softcomm provides end-to-end PC manageability solutions to OEMs, enterprises and service providers; Winking Entertainment is a software development outsourcing company focused on 3D on-line gaming.
Intel Capital has been active in China since 1998, the company said. Examples of companies that Intel Capital has worked with in China include A8 Music, BCD Semiconductor Manufacturing Ltd., Cellon, Chinacache, Chipsbank, Fangtek, HiSoft Technology International Ltd., Onewave, TopSec Holdings Ltd., and Verisilicon.
Additionally, several Intel Capital portfolio companies have either gone public or been acquired by other companies including Actions Semiconductor, Asia InfoHoldings Inc, Chinacast Communications Holdings Ltd, Longshine Information Technology Co., Ltd., PCCW Hong Kong, Sohu.com, Techfaith Holdings Ltd., and UT Starcom.
The new investments reflect Intel Capital’s bolder, more global strategy, the organization said, in a statement. Intel Capital is putting a greater percentage of its investments into emerging markets, and in 2005 invested about 60 percent of its $265 million total in markets outside the United States.
Recognizing the importance of technology innovation centers outside the United States, Intel Capital over the past year announced the formation of a series of geographic investment funds in India totaling $250 million, the Middle East and Turkey totaling $50 million, and most recently Brazil totaling $50 million in March 2006.
