NEW YORK — Intel Corp., the world’s largest maker of computer chips, on Monday said it established a $200-million US venture capital fund to invest in Chinese technology companies that develop hardware, software and services.

The Intel Capital China Technology Fund will target upstart companies that work with the semiconductor company’s products. The technology heavyweight said examples of areas it plans to focus on are cellular communications, broadband applications for consumers, and chip design.

Creation of the fund marks the latest company looking to expand into China as that nation continues to loosen restrictions on outside investments. Intel Capital said its investment managers based in Hong Kong, Shanghai and Beijing have made strategic investments in China since 1998.

Already, almost 50 Chinese companies have received investments from Intel — with 11 going public or being acquired. Intel has held investments in telecom software supplied AsiaInfo Holdings Inc. and Internet portal Sohu.com.

“The pace of IT innovation is accelerating,” Intel Capital president Arvind Sodhani said in a statement.

“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.”

© The Vancouver Sun 2005