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Intel Capital Ups Asian Investments

Looks like Intel's venture funding arm, Intel Capital, is looking more to

Asia to juice up its portfolio of investments than ever before.  Touting

its know-how to empower global connections and business growth, the MPU giant is

showing signs of increasing investments in China and Japan as the world

economies begin to bounce back from the 2009 recession

Since 1991, Intel Capital has invested more than $9 billion in over 1,000

companies in 46 countries. In that timeframe, 174 portfolio companies have gone

public on various exchanges around the world and 231 were acquired or

participated in a merger.  In 2008, Intel Capital invested about $1.59

billion in 169 investments with approximately 62% of funds (excluding Clearwire)

invested outside North America.  Intel's venture arm has invested over $500

million in more than 80 technology companies across mainland China and Hong

Kong. During the past four years, Intel Capital has created two dedicated China

investment funds totaling over $700 million.

With two billion dollars under management in the Intel Capital fund, it

appears that the company is looking to step up its investments in Japan in

2010.  The aim will be to target those startups which can help Intel

increase MPU sales.  Technologies which Intel is looking to invest in are

believed to include 3-D video and cinema technology, energy-efficient

appliances, rechargeable batteries and semiconductor production equipment.

Intel Capital has spent more than $330 million buying stakes in Japanese

companies including Nikon since it began funding firms in Japan in 2000. 

In 2009, Intel invested about $55 million in three companies:  Onkyo, a

maker of home theater systems, V- Cube, a developer of Web-based

videoconferencing systems, and UQ Communications, a provider of nationwide WiMax

wireless broadband services.

At the 10th annual Intel Capital conference held in November 2009, the

company announced seven new investments spanning three continents and totaling

approximately $25 million; 10 new follow-on deals were also announced.

The new investments, almost all led by Intel Capital, included U.S.-based

Joyent (cloud computing) and Active Storage (RAID storage systems for Apple

users), Korea-based Crucialtec (optical modulation technology), Taiwan-based

Gudeng Precision Industrial Co (semiconductor front-end equipment

manufacturing), Japan-based V-cube (Web-based videoconferencing systems),

China-based Phoenix New Media (Web information portal) and United Arab

Emirates-based NeuString (telco pricing analytics software).

The follow-on deals included Argentina-based Vostu (social gaming),

Israel-based Safend (endpoint security provider), China-based China Digital

Video Limited (video equipment and network solution provider), U.S.- and

China-based Verisilicon Holdings (design foundry), U.K.-based picoChip (baseband

silicon for 3G femtocells and WiMAX infrastructure), India-based Financial

Information Network & Operations Pvt. Ltd. (biometric smartcard enabled

banking solutions), India-based Wortal, Inc (local entertainment events portal,

Buzzintown.com) and U.S.-based Sendmail (messaging infrastructure provider) and

Zend Technologies (PHP Company). Intel Capital also recently announced a $50

million investment in Clearwire.



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