Intel Doubles Budget for Shopping in China

What is the buzz word in China these days? It is technology. China has made a momentous transition to a more “connected” society and is an exploding market for digital media, wireless broadband and telecommunications technologies. These arenas are offering unprecedented opportunities for small and big entrepreneurs alike.

I mean, look at the statistics… they’re nothing less than incredible. At the end of last year, there were 210 million Internet users in the country, according to the China Internet Network Information Centre. That’s only 5 million short of the US figures. And the pace at which China is adding new users is 10 times that in the US. In 2007, the global mobile phone output surged to 1.141 billion units and Mainland China accounted for more than 50% of this figure.

To tap on these trends, Intel Corp is zooming in on China. In April, the leading chipmaker launched its second venture capital fund for the region. Through Intel Capital China Technology Fund II, the US-based company has plans of investing US$500 million over the forthcoming 3 to 5 years. The fund aims to focus on startups in the fields of wireless broadband, media, telecommunications and “clean technology.”

China is not new to the chip giant. It has been investing in Chinese companies since 1998. Intel had established a venture capital fund targeting the Asian nation in 2005. The fund invested US$200 million in about 28 technology companies that were developing innovative hardware, software and services. Some of this fund’s most lucrative investments include Kingsoft, Actions Semiconductor and Neusoft Group.

The latest fund would invest in larger rounds. It would even consider being the lead investor in some companies. Moreover, this fund is the largest that Intel’s global investment arm, Intel Capital, has allocated for any single country.

Among the latest fund’s initial investments are Holdfast Online Technology and Newauto Video Technology. Holdfast Online Technology is known for its software that allows gamers to compete with each other over a wide area network. Newauto Video Technology develops and markets video equipment, networking software and system integrations for TV stations in China.

Intel is not alone in betting on technology in China. With the revolution in digital communication taking China by storm, the Asian dragon is ready to set the world on fire.