Intel Capital announced its second China investment fund, the Intel Capital China Technology Fund II worth US$500 million.

The money will used for Intel Capital investments in wireless broadband, technology, media, telecommunications and clean tech that complement Intel's corporate initiatives and help expand technology market segments in China.

The Intel Capital China Technology Fund, established in 2005, was intended to help Chinese businesses nurture important technologies and develop innovative products. Examples of investments include: Neusoft Group, Supcon Group, A8 Music, Chinacache International, Chipsbank Microelectronics, DAC, HiSoft Technology International, Kingsoft, Legend Silicon, Montage Technology, and Palm Commerce. Notable liquidity events involving portfolio companies from the first fund include: Actions Semiconductor, Kingsoft and Neusoft Group.

"The establishment of our China Technology Fund II, which is more than double the size of the original China Fund, is the ideal way to celebrate 10 years of Intel Capital activity in China's vibrant economy," said Arvind Sodhani, president of Intel Capital. "Since 1998, Intel Capital has invested in more than 70 companies across China and Hong Kong. We aim to foster innovation and local entrepreneurship, while enriching the technical capabilities and global competitiveness of technology companies in the region."