Intel Capital unveils second China venture fund

Chipmaker Intel has doubled down on China, announcing Tuesday that it has launched its second venture capital fund for the region.

Intel Capital China Technology Fund II is a $500 million fund that will focus on investments in start-ups doing work in areas such as wireless broadband, media, telecommunications, and "clean technology."

Over the past five years, the Chinese government has been trying to promote innovationand is working on developing a Nasdaq-like market for young companies.

"Given the success of the original China Fund--with investments in more than 28 companies--it is time to renew our commitment," Cadol Cheung, Intel Capital Asia Pacific managing director, said in a statement.

Intel plans to use the new fund to participate in larger rounds and even serve as the lead investor, Cheung noted.

Under its China Technology Fund II, Intel has funded two companies: Holdfast Online Technology and Newauto Video Technology.

Holdfast hosts third-party console games that allow gamers to compete against each other over a wide area network, while Newauto develops and markets video equipment, networking software, and system integrations for Chinese TV stations.

The chip giant's latest fund is more than double the size of its original $200 million Intel Capital China Technology Fund, which was founded in 2005.

Intel Capital, prior to creating a fund in China, had been investing in Chinese companies since 1998, either in specific areas such as communications in or regional funds.